Posted on 05/12/2015 4:37:48 AM PDT by thackney
Oil production from the Bakken and Eagle Ford shale plays look like they’ve peaked and other shale plays may not be far behind.
Oil production from seven major U.S. shale plays is expected to fall by a total of 86,000 barrels a day in June, according to a monthly report from the Energy Information Administration released Monday. The previous report released a month ago also showed a forecast for a fall of 57,000 barrels a day in May.
Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47,000 barrels a day in June. The Bakken shale play, which stretches from Canada into North Dakota and Montana, is expected to see output fall by 31,000 barrels a day, the report said. That would follow forecast declines in both regions for the month of May.
“The data shows that production in the Bakken and Eagle Ford [plays] peaked in March at 1.33 million barrels a day and 1.73 million barrels a day, respectively,” said James Williams, energy economist at WTRG Economics.
(Excerpt) Read more at marketwatch.com ...
OMG it’s PEAK OIL.2! (we’re doomed).
So what’s your guess on the next few years’ oil prices. BAck up to 199 or worse.
its just getting silly all the predictions the past two years.
first its going to 150. then down to 20. now back up to 80? I’m confused.
I hate make oil price predictions. Understanding the oil industry is not the same as being able to predict everything that significantly impacts oil prices.
first its going to 150. then down to 20. now back up to 80? I’m confused.
Regardless of what they claim, so is everyone else. Anybody who can reliably predict oil prices wouldn't be working for a living writing articles. They would own their private island, probably Australia.
It’s too bad Diesel will never fall below the price of Regular again.
lol. Well at leas it started rising again before those disgusting greedy pigs in congress could add more tax onto the price. They make me sick. See any opportunity for more money and run after it.
Was thinking of some extra cash with livery a few nights a week. When gas was 4.30 in this pit of a city, NY, it was brutal. At 2.50 it might have bee worth it. Now back up to 3.
I wonder how much of that decline is due to the oil price plunging over the past year, thus putting some wells out of business for the time being.
I’ve never understood what the heck diesel is? is it some different kind of chemical formula from regular gas? in law had a diesel care maybe 25 years ago? I think.
I knew a disgusting jerk who used to fill his station with regular and sell it as unleaded. I was a kid so I kept my mouth shut but he probably got caught because he was a big mouth.
100%
thus putting some wells out of business for the time being.
$50~60 oil is not shutting down existing wells already flowing oil. However, all oil wells decline production over time. And new shale and other tight productions decline very rapidly over the early years of life.
So unless enough new wells continue to be drilled, the total production will fall. That is what has happened.
It rose due to EPA requiring Ultra-Low Sulfur Diesel. Diesel now requires extra processing to remove the sulfur down to 15 parts per million.
But don't worry, diesel will be below the price of gasoline again. Not because diesel is going to get cheaper, but rather because gasoline is going to get more expensive. The EPA is now going to do the same thing to gasoline.
Tier 3 Vehicle Emission and Fuel Standards Program
http://www.epa.gov/otaq/tier3.htm
The Tier 3 program is part of a comprehensive approach to reducing the impacts of motor vehicles on air quality and public health. The program considers the vehicle and its fuel as an integrated system, setting new vehicle emissions standards and lowering the sulfur content of gasoline beginning in 2017. The vehicle standards will reduce both tailpipe and evaporative emissions from passenger cars, light-duty trucks, medium-duty passenger vehicles, and some heavy-duty vehicles. The gasoline sulfur standard will enable more stringent vehicle emissions standards and will make emissions control systems more effective.
I’ve never understood what the heck diesel is? is it some different kind of chemical formula from regular gas?
- - - - - -
Gasoline and Diesel, like crude oil, is a blend of many different hydrocarbon molecules. Gasoline is made of smaller, lighter molecules than diesel. Gasoline has more vapors given off at standard temperature and is easier to ignite.
Crude oil contains the hydrocarbons of both gasoline and diesel along with lighter and heavier molecules as well.
Thanks I remember diesel being cheaper many years ago.
Before the EPA made it expensive to produce...
Should have known some alphabet agency affected it.
Cant wait till Cruz slashes and burns...hope I’m not living in a fantasy world.
Diesel is cheaper than Regular gas in SW Michigan.
When the S level in gasoline has to drop, it could happen.
I’ts less refined, more crude. If you ran gasoline in a Diesel engine, woah daddy! Stand back! Diesel operates on high compression to create heat. Aviation fuel is practically the same. We could run diesel equipment on fuel from our turbine engine helicopters just fine. I have a gas Ford Ranger 4x4 on a lift kit but I still don’t like gasoline though. More stuff to fail and gasoline is dangerous too.
Incidentally, I’m attending a tech college and I’m taking Diesel Equip Tech to obtain a diploma and heavy diesel certification. I love this stuff. It’s cool. My options for employment will be very open.
That’s awesome man!! You already seem to know a lot more than the average joe. Sounds very cool.
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