I saw that same headline when I was a kid waiting for my first drivers license.
That's back when you could buy Sunoco 260 for 35¢ a gallon.
Posted on 04/08/2015 9:17:19 AM PDT by thackney
...Output will average 9.37 million barrels per day (bpd) in April and the same in May before falling to 9.33 million bpd in June and 9.04 million bpd by September, the EIA predicted in the April edition of its Short-Term Energy Outlook (STEO)....
Production is forecast not to exceed this month's level for another 18 months. The EIA has cut its forecast for the end of 2016 by 230,000 bpd compared with three months ago...
It is unlikely a halving of the rig count can be completely offset by greater target selectivity and other efficiency improvements such as employing only the most powerful rigs, drilling longer laterals and reaching target depth faster.
Drilling data points to a strong probability that production from new wells will soon start to fall - if it is not falling already. Given the rapid declines in output from wells drilled in 2013 and 2014, total output from new and legacy wells should start to fall soon.
The most common question I am asked at the moment is: if the rig count has fallen by 50 percent, why is output still rising?
The simple answer: there is a delay of six months or more between changes in the number of new wells being drilled and reported changes in production.
It can take 20-30 days for a rig to drill a new well and then another 60 days or more for the well to be fractured and all the above-ground equipment put in place before the well flows its first oil.
Most major oil-producing states require well operators to submit a monthly report on the amount of oil and gas produced, but the first report is not usually due for up to two or three months after a new well has begun flowing.
(Excerpt) Read more at rigzone.com ...
How many times have they claimed this in the last 125 years? Don’t they get that technology is always finding new ways to do things?
Always a function of price.
When prices rises significantly again, so will production.
Makes ya mad as hades to listen to the manipulation of the oil markets by speculators, OPEC and the feral gubbamint.
For the sake of the Texas economy, I'm ok with $70-$90 bucks for a 42gallon barrel of oil, but $140?
That's insane and now that we have the technology to extract oil that once was considered unrecoverable, hope we never allow OPEC or as this CEO called them “predatory” cartels to put the squeeze on America ever again.
I saw that same headline when I was a kid waiting for my first drivers license.
That's back when you could buy Sunoco 260 for 35¢ a gallon.
When I was mowing yards in the Texas summer heat in the 60s I recall taking the one gallon tank to the filling station and with a quarter getting a gallon of gas and have 2 cents left for 2 grape bubble gum balls.
PEAK OIL, again....
Again?!
There you go. If OPEC manages to ratchet up the price per barrel of oil, American drilling risk becomes more rational.
For those whose reaction was the same as mine, no, this isn’t Peak Oil. This is peak market. Apparently supply and demand are related somehow. Who knew?
Yes, it does get old. I read about peak uranium somewhere recently too in regards to nuke power.
This time it's really true.
Really.
No kidding - Really, Really.
“Always a function of price.
When prices rises significantly again, so will production.”
Exactly right as long as the government stays out of it.
Michael Berry speaks to former Shell President John Hofmeister, they discuss energy policy, gas prices, the Keystone XL Pipeline.
Tuesday, April 7th 2015, 5pm
This isn’t about oil not being technically available, it is about the economics of producing at this current price.
So we tapped out ANWR?
ANWR isn’t available to the oil producers.
This article is not claiming that oil is not technically available. It is stating reality; at today’s prices, for the areas available, oil production in the US is leveling off and will soon begin to decline.
When oil prices recover, so will production rates.
For the love of Pete!
HHHMMMM: didn’t I hear the same thing in 1974?
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