Oil Supply & Reflation

Oil Trades Near One-Week High on Outlook for Economic Stimulus at Bloomberg.

Oil Supplies Appear Tighter in Crisis Mirror at WSJ.

The Repricing of Oil by Gregor.  My view of some nuances differ, yet he’s as good an oil analyst as any.

Hans, this is something which requires further investigation:  Investor Village.

Two years ago PXP couldn’t get out of the Gulf of Mexico fast enough.  BP Is Said to Near $6 Billion Sale of Gulf Assets to Plains at Bloomberg.  “One thing Jim Flores is known for, when he makes a move it’s usually a pretty big move and he’s not reckless about it”.

Five years of commodities:  Research PuzzleReflationary Train Leaving the Station by Chris Puplava.

7 thoughts on “Oil Supply & Reflation

  1. Interesting piece by, Mr GREGOR MACDONALD…
    Much to digest and think about…A lot of what he stated is true, however, I have also read some of this work at Oilprice.com, of which appears to be bearish in nature.

    I was critical of him, because he never takes in account the meddling of government and the operations of state oil companies, which tend to be less than efficient…

    As the village idiot, I shall read the Investor Village, Mr Butler. Thank you for the tip…

  2. Mr Likvern, is connect with the OilDrum and as such I would view his data with a great deal of suspicion…

    Even if this data portents to be factual, the time frame presented is, IMHO, much too short..

    This is a question, which only, Mr Filloon, maybe able to address…

  3. The english version of Mr. Likvern’s paper is expected next week for evaluation. I am skeptical too.

    • Thank you! I found this on Professors website today.

      “4) The amount of oil produced per active well in North Dakota increased to 2,861 barrels during the month of July, which was almost 20% above the oil output per well during July last year, and likely reflects the increased efficiency gains from advanced drilling technologies like “pad drilling” that are gaining popularity.”

      • As the producers rapidly move up the science, engineering and geology learning curve IP’s and EUR’s continue to improve. Thus the skepicism of Mr. Likvern’s assersion.

        Pad drilling, while fantastic for efficiency, is a different issue, having to do with the length of time a rig is held/rented. As land becomes HPP’d a rig can stay on the same pad and drill multiple wells, rather than packing up and moving many miles down the road to set up again.

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