Oil Drops After Biggest Gain in 5 Weeks as Storm Slows at Bloomberg.
Mark Papa oil market commentary: “Regarding oil, we still think the global supply-demand balance is tight, and we expect prices to strengthen throughout the remainder of the year. Two recent concerns I’ve heard from oil bears involve horizontal shale oil. One concern is will the U.S. create enough shale oil to affect global supply. EOG’s forecast is an increase in the U.S. of 2 million barrels of oil per day by 2015, which, we believe, will not impact a 90 million barrel of oil a day global market…The second concern relates to possible international horizontal oil shale plays and their potential impact on supply. My answer there is maybe it will happen, but it’s not likely for another 10 years at least.” SA
Mark Papa on the US horizontal oil plays: “We think there are only 3 consequential horizontal oil plays in North America, the Eagle Ford, Bakken and Permian, and all other alleged oil plays are either inconsequential on a national scale or really NGL plays.”
Papa is on target, only he missed the Mississippian via Million Dollar Way.
Monterey shale in California will likely not match the Bakken: Bakken Zone.
US Crude Production Has Grown 13% In The Past 18 Months, chart at Business Insider.
Good for the Bakken: Seaway Reversal & Expansion Project on Schedule for Mid 2014 at RBN Energy. The Eagle Ford may have the best economics, but the Bakken is the largest. Perspective from Million Dollar Way.
“Oil rigs were up 13 to 1,429 gas rigs were down seven to 498…” Haynesville Play.
Fuel economy standards have affected vehicle efficiency at the EIA.
How to Play Energy from Barron’s. (Google the title to be able to read the entire article.)