Peak Oil Review 3 December 2018
Total US oil reserves in 2017 exceeded a … 47-year-old record, highlighting the importance of crude oil development in shales and low permeability plays, mainly in the Southwest.
Oil and the Global Economy
US oil production continued to climb in September with oil companies producing a record 11.47 million barrels per day (b/d), 1.98 million b/d higher than in September 2017 (it takes two months to get reliable numbers accumulated). This rapid growth is raising concerns around the world about overproduction. Coupled with slower economic growth in China and Europe, the surge in production has resulted in a $25 a barrel decline in world oil prices during the last two months. New York futures closed at $50.93 on Friday and London closed at $59.46.
With gasoline prices down by 30 cents a gallon and approaching $2 in some states, President Trump is calling for even lower prices, calling the rapid price decline “a big Tax Cut for America and the World.” If many shale oil drillers were unable to make a profit with oil at $75 a barrel, then they certainly won’t with $50 oil. The same holds true on the international market where $60 oil is well below what many exporters need to sustain their national budgets.