Booming Oil & a Treadmill

Yesterday I asserted shale is being underestimated in the press and public, and I received push-back from knowledgeable investors.  The world has changed fast.  Perhaps the estimates quoted and linked were aggressive.  But not by much.  “The Eagle Ford produced no oil in April 2008. This April it accounted for 4.6 percent of U.S. production.”  The Texas RRC estimates May Eagle Ford production was 262,563 barrels of crude a day and April’s production was 279,000 bbl/d.  Yet they are so far behind that April’s number was revised higher by 56,000 bbl/d.  Oops.  Expect May to be revised much higher too.  Fuel Fix.

The Eagle Ford compares favorably with the Bakken:  Oil & Gas Journal.  Forbes piece on Continental’s (CLR) Harold Hamm:  Forbes.

Cenovus Energy Inc. Target $44 for Bakken and Oil Sands Values at AMP 2012.

The shale boom is remarkable, but it is not a panacea for world oil production rates.  The treadmill is too fast Exxon Mobil (XOM) and ConocoPhilips (COP) who reported second quarter production was lower by 5.6% and 6.5%, respectfully.  Mighty Suncor (SU) is holding back in the oil sands and Shell scales back Arctic drilling plans at Fuel Fix.

Commentary: How much oil growth do we need to support world GDP growth?  ASPO

Largest crude oil producers:  API  Who owns big oil?  API

Margins by industry:  API.  Effective tax rates by industry:  API.

Later today we’ll have more on natural gas with its relationship with coal.

2 thoughts on “Booming Oil & a Treadmill

  1. My dear, Mr Bulter, I pay especial attention to any and all comment coming from, Mr Hamm: as he has made projections far exceeding those of the controlling authorities…

    I have steadfastly agreed, that the Bakken Play has been under appreciated and underestimated as well…Mr Hamm, has placed the entire treasury of CLR into the Bakken…He is a man of extraordinary vision – a pioneer of the Bakken Play….They need to place a statue of him a Penn State, now that they have room…

    Regarding Oilprice.com, which I populate (Hans & Blueice) has a tendency to promoted World Warming, Hubbard’s Peakers and a collection of Green-Pink Eviro Freaks…

    All to many of their articles, are based on emotional appeal and not conclusive scientific facts….Moreover, most of the pieces come from the usual suspects, dot orgs, who have a clear social justice agenda…

    This bias also extends equally (do you see those back bumper stickers with the = on it) to the Oildrum.com as well….However, their presentations are extremely well done!

    Young man, I truly enjoy your website: thank you so much for all of your labors…I will plug this site as much as I can…

    I wish you well, Mr Bulter!

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