Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Oil tumbles after Trump threatens to impose new tariffs on China

 

Wednesday 11 July

 

 

 

BAGHDAD ( Reuters) - Oil prices fell on Wednesday after US President Donald Trump threatened to impose new trade tariffs on China .  The threat of a $ 200 billion charge on other Chinese goods has led to lower commodity prices and stock markets as trade tensions between the world's two largest economies escalated.  Brent crude <LCOc1> fell $ 1.60 or 2.02 percent to $ 77.33 a barrel. US crude fell 1.48 cents, or 1.96 percent, to $ 72.68 a barrel.     Senior US government officials said the United States had decided to impose customs duties on imports of Chinese goods worth 200 billion dollars after efforts to negotiate a solution to the trade dispute failed to reach an agreement.  Administration officials said two months would be available to the public to comment on the proposed fees before the list became final.

[nannab]

Go get em Donny T. 😊  Good morning Yota and DV 

[yota691]

Energy Agency: Global oil production reserve may be exhausted

 

American oil rig

Economy News Baghdad: The International Energy Agency (IEA) said on Thursday that global oil supply reserves may have been fully depleted by long-term protracted production disruptions, boosting prices and threatening demand growth . Oil prices rose to their highest levels since 2014 in recent weeks due to the expected drop in Iran's crude exports this year due to renewed US sanctions as well as a decline in Venezuela's production and disruption of supplies in Libya, Canada and the North Sea . In the short supply, the Organization of the Petroleum Exporting Countries (OPEC) and some of its top producers, including Russia, have relaxed their agreement to cut production. Saudi Arabia has pledged to support the market, while US President Donald Trump has accused the organization of pushing prices higher . The Paris-based International Energy Agency (IEA) said in its monthly oil market report that there were already "very promising" signs that production by top producers was increasing and could reach a record high . But the agency said production disruptions highlighted the pressure on global supplies at a time when global spare capacity reserves may have been exhausted . Excessive capacity refers to the ability of the producer to increase production in a relatively short time, mostly in the Middle East . OPEC's crude output in June reached its highest level in four months at 31.87 million bpd, the agency said. The Middle East's surplus capacity in July was 1.6 million bpd, equivalent to about 2 percent of world production . Non-Opec production also continues to rise, including growing US rock oil production, but the agency says this may not be enough to ease fears . "This weakness is currently supporting oil prices and seems likely to continue. "We do not see any sign of higher production from elsewhere that could ease concerns about the tight supply in the market ." The IEA kept its forecast for oil demand growth in 2018 at 1.4 million bpd, but warned that rising prices could cut consumption . "Rising prices are causing consumer fears everywhere that their economies will be affected. On the other hand, this may have a significant impact on the growth of oil demand . " China and India, the second and third largest oil consumer in the world, may face "major challenges" in finding alternative crude oil after a drop in Iranian and Venezuelan oil exports, the International Energy Agency said. Views 236   Date Added 07/12/2018

[Pitcher]

The oil market is “stretched to the limit” despite the fact that OPEC+ agreed to ramp up production following their meeting last month, according to the International Energy Agency.

The IEA said that the increased supply from Saudi Arabia, its Gulf allies and Russia is “very welcome,” given the series of outages reported around the world.

Oil prices plunged by around 6 percent on Wednesday on news that Libya’s oil export terminals were set to come back online. The IEA said that while the situation was improving “we cannot know if stability will return.”

Indeed, the sudden and unexpected outage from the North African country over the past few weeks illustrates the degree of risk facing the oil market, which is to say, if oil prices can swing by 6 percent on a given day because of the specific events in one rather unstable country, the market is pretty tight and pretty vulnerable.

A few other outages are adding to the tightness. Syncrude Canada suffered a 360,000-bpd outage in June, which was thought to last through July but could stretch into September or even October. A lesser-known 360,000-bpd decline from the North Sea was reported in May, a drop off that could last through the summer due to field maintenance. Also, Brazil’s production growth has been disappointing this year, and because Brazil is one of the most important non-OPEC countries after the U.S. in terms of expected output growth, less-than-stellar growth numbers leaves the market tighter than expected.

Related: OPEC Won’t Take Additional Action As Oil Prices Rise

Saudi Arabia and Russia ramped up supply in June, adding roughly 500,000 bpd together. But the outages in Libya, Canada, the North Sea, Brazil, Angola and Kazakhstan offset the gains from the two largest producers in the OPEC+ coalition.

The U.S. campaign to isolate Iranian oil exports is already starting to have an effect, even though the deadline for countries to cut their purchases of oil from Iran is in November. Iran’s oil exports fell by 230,000 bpd in June from a month earlier, and European refiners cut their purchases by 50 percent. The real danger to the oil market is if a large portion of Iranian supply is shut in this year.

“This vulnerability currently underpins oil prices and seems likely to continue doing so,” the IEA said.

“Some of these supply issues are likely to be resolved, but the large number of disruptions reminds us of the pressure on global oil supply,” the IEA wrote in its report. “This will become an even bigger issue as rising production from Middle East Gulf countries and Russia, welcome though it is, comes at the expense of the world’s spare capacity cushion, which might be stretched to the limit.”

 

The IEA says there are only three countries from OPEC that really hold spare capacity that is readily available. Saudi Arabia, Kuwait and the UAE had 2.1 mb/d of spare capacity in June. But because those countries are increasing output – a “very welcome” event – it will trim spare capacity down to just 1.6 mb/d in July.

“In 4Q18, US sanctions on Iran are expected to hit hard and Venezuelan capacity may spiral lower. To help compensate for the further unplanned declines and limit stock draws, Saudi Arabia could ramp up even more which would cut its spare capacity to an unprecedented level below 1 mb/d,” the IEA said.

“We see no sign of higher production from elsewhere that might ease fears of market tightness.”

On the demand side of the equation, higher prices are starting to be felt. Oil demand started the year at a blistering pace, growing at a 2-million-barrel-per-day rate in the first quarter, year-on-year. That has slowed dramatically. The IEA acknowledged the threat to the demand forecast from high prices, but did not alter its forecast for the full year. “[A]lthough there are emerging signs of reduced economic confidence, and consumers are unhappy at higher prices, we retain our view that growth in 2018 will be 1.4 mb/d, and about the same next year.”

 

Related: The Downside Risk For Oil

Still, the IEA noted several risk factors to this forecast. Demand growth at that level is predicated on strong economic growth, and the agency is assuming global GDP growth at 3.9 percent. The global trade war pursued by the Trump administration could upend that rate of expansion. “ncreasing trade tensions could have a direct negative impact on economic growth, bunker fuel demand and diesel used by trucks for the transportation of traded goods,” the IEA said. “Tariffs could also affect the trade of oil and petrochemical feedstocks and products. Several countries are also feeling the pain of higher oil prices, particularly so when combined with currency depreciation versus the US dollar.” The agency expects Brent to average $73.50 per barrel this year and $73.60 in 2019.

With that said, supply risks are dominating market psychology right now. Oil prices crashed on Wednesday on news that Libya supply was coming back. But on Thursday, oil rebounded a bit after the IEA warned of market tightness and low spare capacity.

“The market’s move lower yesterday seemed quite extreme. It ignored the biggest U.S. crude drawdown since September 2016, and it’s recovering on that,” Warren Patterson, a commodities strategist at ING, told the Wall Street Journal.

 

https://oilprice.com/Energy/Energy-General/This-Oil-Price-Crash-Was-Just-A-Correction.html

[yota691]

Oil prices are heading for a big weekly fall

10:23 - 13/07/2018

 

 

 

Mawazine News 
 Oil prices steadied little changed on Friday, as the market digested the large patterns earlier in the week, which made the benchmark crude faces its second weekly loss in somewhat ignoring warnings about shrinking spare capacity. 
Brent crude <LCOc1> fell 20 cents, or 0.3 percent, to $ 74.25 a barrel by 0523 GMT. Crude was up $ 1.05 a barrel on Thursday, recovering from a record low of $ 72.67 a barrel. 
Crude is heading for a weekly drop of about 4 percent. 
US crude <CLc1> rose 5 cents to $ 70.38 after remaining low across much of Asia. Crude is heading for a weekly drop of more than 4 percent.
The week was a tough day for the crude, with heavy losses on Wednesday as traders focused on Libya's return to the market amid fears of a Sino-US trade war. 
But a warning about the International Energy Agency's surplus production capacity led Brent up on Thursday, helping to offset some of the losses.

[yota691]

US expected to become world's top oil producer next year

Posted: Jul 13, 2018 11:34 AM EDTUpdated: Jul 13, 2018 11:43 AM EDT

 

 

 

Chart shows the top oil producing countries in March 2018 as the U.S. is on pace to pass Russia and Saudi Arabia as the leading oil producing country; 2c x 3 3/4 inches; 96.3 mm x 95 mm;

By DAVID KOENIG
AP Business Writer

The U.S. has nosed ahead of Saudi Arabia and is on pace to surpass Russia to become the world's biggest oil producer for the first time in more than four decades.

The latest forecast from the U.S. Energy Information Administration predicts that U.S. output will grow next year to 11.8 million barrels a day.

"If the forecast holds, that would make the U.S. the world's leading producer of crude," says Linda Capuano, who heads the agency, a part of the Energy Department.

Saudi Arabia and Russia could upend that forecast by boosting their own production. In the face of rising global oil prices, members of the OPEC cartel and a few non-members including Russia agreed last month to ease production caps that had contributed to the run-up in prices.

President Donald Trump has urged the Saudis to pump more oil to contain rising prices. He tweeted on June 30 that King Salman agreed to boost production "maybe up to 2,000,000 barrels." The White House later clarified that the king said his country has a reserve of 2 million barrels a day that could be tapped "if and when necessary."

The idea that the U.S. could ever again become the world's top oil producer once seemed preposterous.

"A decade ago the only question was how fast would U.S. production go down," said Daniel Yergin, author of several books about the oil industry including a history, "The Prize." The rebound of U.S. output "has made a huge difference. If this had not happened, we would have had a severe shortage of world oil," he said.

The United States led the world in oil production for much of the 20th century, but the Soviet Union surpassed America in 1974, and Saudi Arabia did the same in 1976, according to Energy Department figures.

By the end of the 1970s the USSR was producing one-third more oil than the U.S.; by the end of the 1980s, Soviet output was nearly double that of the U.S.

The last decade or so has seen a revolution in American energy production, however, led by techniques including hydraulic fracturing, or fracking, and horizontal drilling.

Those innovations - and the breakup of the Soviet Union - helped the U.S. narrow the gap. Last year, Russia produced more than 10.3 million barrels a day, Saudi Arabia pumped just under 10 million, and the U.S. came in under 9.4 million barrels a day, according to U.S. government figures.

The U.S. has been pumping more than 10 million barrels a day on average since February, and probably pumped about 10.9 million barrels a day in June, up from 10.8 million in May, the energy agency said Tuesday in its latest short-term outlook.

According to the Energy Department, the U.S. edged ahead of Saudi Arabia in February and stayed there in March; both trailed Russia.

Capuano's agency forecast that U.S. crude output will average 10.8 million barrels a day for all of 2018 and 11.8 million barrels a day in 2019. The current U.S. record for a full year is 9.6 million barrels a day in 1970.

The trend of rising U.S. output prompted Fatih Birol, executive director of the International Energy Agency, to predict this spring that the U.S. would leapfrog Russia and become the world's largest producer by next year - if not sooner.

One potential obstacle for U.S. drillers is a bottleneck of pipeline capacity to ship oil from the Permian Basin of Texas and New Mexico to ports and refineries.

"They are growing the production but they can't get it out of the area fast enough because of pipeline constraints," said Jim Rittersbusch, a consultant to oil traders.

Some analysts believe that Permian production could decline, or at least grow more slowly, in 2019 or 2020 as energy companies move from their best acreage to more marginal areas.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[ChuckFinley]

Would like to see some of that stay here. 

[ChuckFinley]

Thanks Yota, just working on my first cup.  

[Pitcher]

Saudi Arabia is offering extra oil on top of its contractual volumes to some buyers in its key market Asia, as OPEC’s largest producer boosts oil production to keep markets well-supplied amid disruptions from Venezuela to Libya and to expected reduction of Iranian oil exports, Bloomberg reportedon Monday, citing people with knowledge of the plans.

Saudi Aramco has offered for August additional cargoes of its Arab Extra Light grade to at least two customers in Asia, Bloomberg’s sources say. One of those buyers who had been offered additional volumes of Arab Extra Light agreed to take them, according to one of the sources.

While it is opening the taps, Saudi Arabia also cut last week its official selling prices (OSPs) for most of its grades to the Asian markets for August, in a sign that it wants to attract more customers now that it has raised production. The OSP for the Saudi flagship Arab Light grade for Asia was reduced by US$0.20 to a premium of US$1.90 above the Dubai/Oman benchmark. This was the first cut in Arab Light pricing for Asia in four months and a drop from the highest OSP since July 2014.

Saudi Arabia had opened the taps even before OPEC and Russia agreed at the end of June to ease the production cuts to respond to the high oil prices and supply disruptions, judging from OPEC’s Monthly Oil Market Report that showed the Saudis boosted their crude oil production in June by more than 400,000 bpd.

 

According to OPEC’s secondary sources, the ones the cartel uses to calculate quotas and compliance, Saudi Arabia’s oil production jumped in June by 405,400 bpd compared to May, to reach 10.420 million bpd.

Reports have it that the Saudis are preparing to pump their highest-ever crude oil volumes in July, at 10.8 million bpd—above the current all-time high of 10.72 million bpd from November 2016, just before the OPEC+ deal entered into force.

As a result, At 11:35 ET, WTI was trading down 3.25% at $68.70, with Brent trading down 3.40% at $72.77

 

https://oilprice.com/Energy/Oil-Prices/Oil-Slides-As-Saudis-Gear-Up-To-Pump-Record-Volume.html

 

[SocalDinar]

WTI crude falls 4% but stalls at 61.8% Fibonacci level

 Technical Analysis

 Mon 16 Jul 2018 17:08:30 GMT

Author: Adam Button |  oil

 

• 
  share

Oil technical analysis

Oil bounced from the 50% retracement on Friday but talk of Saudi Arabia offering customers more supply and signs of increased Iraq shipments sparked a rout today with WTI down $2.89 to $68.12.

The drop cut through Thursday's low and oil also briefly fell below the 61.8% retracement before bouncing slightly. The $68.05 level will be one to watch on the close.

Note that crude seasonals are now in a time of weakness. The numbers to watch in the week ahead will be the US inventory data, and how the market reacts to them. Inventories tightened dramatically last week and oil dropped anyway.

https://www.forexlive.com/technical-analysis/!/wti-crude-falls-4-but-stalls-at-618-fibonacci-level-20180716

 

[yota691]

Oil falls for a second day on fears of oversupply

 2018-07-17 10:09:18

 Oil prices fell for a second session on Tuesday as fears of a possible supply disruptions eased, while investors focused on the possibility that global growth would be hurt by the worsening trade dispute between China and the United States.

London Brent crude futures fell 32 cents, or 0.5 percent, to $ 71.52 a barrel by 0638 GMT, its lowest since April 17. Crude was down 4.6 percent on Monday.

US West Texas Intermediate crude futures lost 31 cents, or 0.5 percent, to $ 67.75 a barrel. Crude was down 4.2 percent yesterday.

Beijing is still confident of a target growth of around 6.5 percent this year, although it is believed to face difficulties in the second half of the year as the trade dispute with the United States worsens, the State Planning Commission said Tuesday.

The comments came a day after China announced a slight slowdown in growth in the second quarter, recording the weakest pace of factory activity in two years in June, signaling further weakness in business conditions over the coming months as trade pressure grew.

US production from seven major oilfields is expected to rise by 143,000 bpd to a record 7.47 million bpd in August, according to the US Energy Information Administration's monthly report released on Monday.

[Pitcher]

Goldman Sachs—which has been bullish on oil for most of this year— continues to expect that Brent Crude prices could retest the $80 a barrel threshold this year, but probably only late in 2018, not this summer, as uncertainties mount over the timing and magnitude of global supply disruptions.

“Production disruptions and large supply shifts driven by U.S. political decisions are the drivers of this new fundamental volatility, with demand remaining robust so far,” Goldman Sachs said in a note on Monday, adding that Brent Crude is expected to trade in the $70-$80 a barrel range amid this new fundamental volatility.

At 10:40 a.m. EDT on Tuesday, Brent Crude was unchanged for the day at $71.84, and WTI Crude was down 1.15 percent at $67.28.

A month ago, the investment bank kept its forecast that Brent Crude would hit $82.50 a barrel this summer and would end 2018 at $75 per barrel, citing strong demand growth and further supply losses pointing to continued declines in inventories and higher oil prices for the rest of the year.

Goldman still thinks that Brent could retest the $80 a barrel market, but only late this year, instead of in the summer, depending on U.S. oil policies. 

 

Two weeks ago, the investment bank also said that concerns over a U.S.-Chinese trade war that could dampen prices and demand were “oversold.” Related: Trump’s Ultimate Move To Lower Gasoline Prices

In recent weeks, supply disruptions in Venezuela, Canada, and Libya, and the prospect of significantly lowered Iranian oil exports, have supported oil prices, while Saudi Arabia and Russia boosting production and the U.S.-China trade war have dragged prices down.

“The uncertainty on the magnitude and timing of the supply shifts has muddied the near-term outlook for oil fundamentals,” Goldman said in its note this week, carried by Reuters.

The U.S. signaled on Monday that it could consider waivers in some cases for countries who need more time to wind down purchases of Iranian oil, with U.S. Treasury Secretary Steven Mnuchin saying that “We want people to reduce oil purchases to zero, but in certain cases if people can’t do that overnight, we’ll consider exceptions.”

By Tsvetana Paraskova for Oilprice.com

 

https://oilprice.com/Energy/Oil-Prices/Goldman-Brent-To-Retest-80-This-Year.html

 

[NEPatriotsFan1]

Thanks Pitcher, hopefully this helps our cause

[yota691]

OPEC oil prices are gradually falling and record $ 70 a barrel

 

Wednesday 18 July

 

 

Alsumaria News / Baghdad announced that the Organization of Petroleum Exporting Countries , on Wednesday, the daily price of the OPEC basket fell gradually to record $ 70 per barrel.  "The price of the OPEC basket of fourteen barrels of crude oil was $ 70.38 per barrel," the group said in a statement read by Sumerian News.  "The price fell from the previous day of $ 71.90, according to OPEC's calculations," the agency said.  Composed Organization of Petroleum Exporting Countries basket (OPEC) reference of the following: desert mixture ( Algeria ), and Girassol (Angola), and Oriente (Ecuador), and Zafiro (Equatorial Guinea), and Raby Lite (Gabon), Iran Iran), Basra Lite ( Iraq ), Kuwait Express (Kuwait), S Sider ( Libya)), Bonnie Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Morgan (United Arab Emirates) and Miri (Venezuela).

[yota691]

A divergence in oil price futures amid negative stability of the US dollar index

 

Oil

Arab and international Economy News Baghdad Crude oil futures fluctuated on Thursday in a narrow range, showing mixed performance during the Asian session as the dollar index fell for the first time in three sessions, according to the inverse relationship between them and on the eve of economic data expected Thursday by the US economy, the world's largest consumer of energy Following the release of the weekly report of the US Energy Information Administration and the second half of the testimony, Federal Reserve Governor Jerome Powell told Congress. US crude futures for November delivery rose 0.12% to $ 67.84 a barrel from $ 68.76 a barrel, while Brent crude futures fell 0.18% to reach 0.18% At $ 72.77 per barrel compared to the opening at $ 72.90 per barrel, while the dollar index fell 0.07% to 95.02 compared to the opening at 95.09. The markets are looking for the US economy to release the weekly reading of the index of requests for aid, which may reflect a rise of 6 thousand applications to about 220 thousand applications during the week of July 14, while the weekly reading of ongoing requests for aid may decline by 14 thousand applications to about 1,725 A request was made during the last week of July 7. Views 12   Date Added 07/19/2018

[yota691]

Including Iraq .. Oil exports to seven countries, "OPEC" drops 1.9% in May

08:50 - 18/07/2018

 

 

 

Follow-up - Mawazine News 
The total exports of seven OPEC members of oil fell by 1.9 percent (317,000 barrels per day) in May, on a monthly basis. 
An Anatolian survey based on GDI figures released on Wednesday showed total exports of the seven countries fell to 16.735 million bpd in May from 17.052 million bpd in April. 
The report includes the exports of the following countries: Saudi Arabia, Iraq, Nigeria, Angola, Qatar, Ecuador and Kuwait; 
The cut-off agreement, to which the Organization of the Petroleum Exporting Countries (OPEC), consisting of 15 member states, has been binding since January 2017, overshadowed exports by member states.
Exports of Saudi Arabia, the world's largest oil exporter, fell to 6.984 million barrels per day (bpd) in May, compared with 7.322 million barrels per day in June, according to Jodi, obtained from OPEC and the International Energy Agency. The previous April. 
Qatar's exports also fell by 7.7 percent to 480,000 bpd, Ecuador by 8.6 percent to 349,000 barrels per day and Nigeria by 9.6 percent to 1.621 million bpd. 
On the other hand, Iraq's exports rose by 4.6 percent to 3.803 million bpd, and Angola by 6.9 percent to 1.478 million bpd. 
Members of OPEC and independent producers led by Russia, beginning in 2017, began cutting output by 1.8 million bpd, with the agreement ending in December 2018.
Despite the agreement to reduce production by 1.8 billion barrels per day, but the countries participating in the agreement was more than the daily reduction to 2.2 billion barrels. 
Members of OPEC and independent producers agreed on June 23 to increase oil production by 1 million bpd starting in July. 
The agreed increase will be achieved by cutting production cuts from 2.2 million bpd to 1.2 million barrels. 
And "Judy", an international organization, established by a decision of oil producers around the world in the early nineties of the last century, and its goal to collect figures and statistics on oil production around the world and presented in the form of studies that concern producers and consumers of oil alike.

[dinareffic]

US report: Texas will overtake Iraq in pumping world oil

13:11 - 18/07/2018
0

Information / Translation

WASHINGTON (Reuters) - Texas will surpass Iraq in the amount of oil pumped into the world market next year, becoming the third-largest oil nation after Russia and Saudi Arabia, a report by CNN reported on Wednesday.

"Rock oil production from the Permian basin in West Texas will outperform OPEC members such as Iraq and Iran next year, according to HSBC's investment forecast ," the report said.

"The amount of rock oil in the American field of Pyramian is similar to what is in the Saudi Ghawar field, which is the largest oil field in the world, and modern technological developments have reduced the cost of pumping oil, where there could be profitable wells at a cost not exceeding $ 40 a barrel."

"The rocky oil revolution has reshaped the global energy landscape. The United States has been pumping oil more than ever before, which will make it less dependent on the troubled Middle East for imports," he said.

"The combined output of Pirmian and Eagle Ford is expected to rise from 2.5 million bpd in 2014 to 5.6 million bpd in 2019, according to HSBC . This means that Texas will account for more than half of the US oil production, compared to the daily production of Iraq about 4.8 million barrels, while Iran is expected to pump 3 million barrels. Ending / 25 z

 

http://www.almaalomah.com/2018/07/18/327165/

[Officiallytook]

🤔🤔🤔

[8th ID]

Drill Baby Drill !!!!

[Pitcher]

Being from Houston and knowing the people I know I can tell you the oil companies knew 50 years ago that Texas was sitting on a sea of oil. All the Drillers needed was the proper technology and the right price to make getting it economically feasible.  All of this has come together in the last 10 years or so.  Remember how Sarah Palin was eviscerated in the 2008 Presidential Campaign by the Democrats.  Sarah was correct and drill baby drill they did.  West Texas Permian Basin drillers stock symbols, Pxd, Eog, Cxo, Xec, Oxy, Apc, Apa, PE, Cvx, Xom.  I trade them weekly.  The first 3 are probably best of breed.  

[SupraRacer]

Hey can we get an HCL in Texas?????? 

 

SR

[new york kevin]

7 minutes ago, SupraRacer said:

Hey can we get an HCL in Texas?????? 

 

SR

Funny guy. Funny guy. I like it.

[Pitcher]

You can’t get an HCL in Texas but you can sure learn to trade the Texas Permian Basin Drillers.  There is a lot of money to be made by learning to become a Technical trader.  Buy and hold is fine if you have 40 years to grin through the ups and downs of the market.  I’ve learned you can beat the heck out of traditional returns if you are willing to learn and do the work. 

[8th ID]

6 hours ago, Pitcher said:

Being from Houston and knowing the people I know I can tell you the oil companies knew 50 years ago that Texas was sitting on a sea of oil. All the Drillers needed was the proper technology and the right price to make getting it economically feasible.  All of this has come together in the last 10 years or so.  Remember how Sarah Palin was eviscerated in the 2008 Presidential Campaign by the Democrats.  Sarah was correct and drill baby drill they did.  West Texas Permian Basin drillers stock symbols, Pxd, Eog, Cxo, Xec, Oxy, Apc, Apa, PE, Cvx, Xom.  I trade them weekly.  The first 3 are probably best of breed.  

You are absolutely correct sir. What a lot of people don’t know either is the large field below the Eagle Ford shale. It is supposed to dwarf the eagle ford. From what I have been told, technology needs to get a little better to get at that depth for it to be economical, and that it isn’t too far off. Our Great Nation can supply all of its needs and them some!

[SocalDinar]

Texas to Pass Iraq and Iran to Become World’s Third-largest Oil Producer

Written by  Warren Mass

 

 

 

Thanks to declining drilling costs allowing for increasing production in the Permian Basin in West Texas, Texas is set to pass Iraq and Iran to become the world’s third-largest producer of oil by next year, the British banking firm HSBC predicted in a recent report.

Texas oil production will be behind only Russia and Saudi Arabia, the HSBC report noted.

“It’s remarkable. The Permian is nothing less than a blessing for the global economy,” CNN quoted Bob McNally, president of Rapidan Energy Group, a consulting firm.

CNN reported that the increase in oil production in Texas, both in the Permian basin and in the Eagle Ford oilfield in south Texas, reveals how the shale-oil revolution has reshaped the world’s energy landscape. Because the United States is pumping more oil than ever before, it is less reliant on the unstable Middle East for imports.

The report noted that the combined output of the Permian and Eagle Ford oilfields is expected to rise from 2.5 million barrels per day in 2014 to 5.6 million barrels per day in 2019, according to HSBC. Texas will then account for more than half of America’s total oil production.

By comparison, Iraq’s daily production is about 4.8 million barrels, while Iran is projected to produce 3 million barrels.

In another report, CNN cited Pioneer Natural Resources Chairman Scott Sheffield, who told the network that overall U.S. oil production, currently at about 10.3 million barrels a day, is expected to exceed 11 million barrels a day within the next few months. When it reaches that level, the United States will become the world’s greatest oil producer, exceeding Russia, which currently pumps 10.6 million barrels a day and Saudi Arabia, which pumps about 10.1 million barrels.

This increase in U.S. oil production was predicted in an article in The New American last January (“U.S. Oil Production Will Soon Overtake Saudi Arabia’s”). The article credited Texas entrepreneur George P. Mitchell, who along with his brother, Johnny, started Mitchell Energy & Development Corporation in the years following World War II, with providing the momentum that propelled Texas and the United States into becoming such a major oil producer.

Mitchell’s company engineers developed new techniques (including improvements in fracking technology) to extract gas, and then oil, from shale, greatly increasing the output of both of these products.

https://www.thenewamerican.com/economy/sectors/item/29586-texas-to-pass-iraq-and-iran-to-become-world-s-third-largest-oil-producer