---
title: "Energy Extravaganza"
url: https://independentstockanalysis.com/energy-extravaganza/
description: "“There is a danger if OPEC doesn’t do anything that prices may collapse” at the Financial Post . “…the report predicts about a 1 mb/d drop in U.S. oil…"
published: 2012-12-07
updated: 2012-12-07
---

# Energy Extravaganza

Published 2012-12-07

Posted on

by

J.J. Butler

“There is a danger if OPEC doesn’t do anything that prices may collapse” at the [Financial Post](http://business.financialpost.com/2012/12/06/oil-prices-may-collapse-if-opec-delays-production-cuts/?utm_source=dlvr.it&utm_medium=twitter).

“…the report predicts about a 1 mb/d drop in U.S. oil consumption by 2020 and a 5 mb/d drop by 2035 relative to current levels.” [Econbrowser](http://www.econbrowser.com/archives/2012/12/will_us_oil_con.html)

EIA forecast for energy production/consumption in the US; massive spike in tight oil output at [Sober Look](http://soberlook.com/2012/12/eia-forecast-for-energy.html).

U.S. oil output has increased by one million barrels per day in just 14 months; September output is highest in nearly 15 years by [Mark Perry](http://www.aei-ideas.org/2012/12/u-s-oil-output-has-increased-by-one-million-barrels-per-day-in-just-14-months-september-output-is-highest-in-nearly-15-years/).

Oil Watch – OECD Oil Production (IEA) at the [Oil Drum](http://www.theoildrum.com/node/9661?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+theoildrum+%28The+Oil+Drum%29&utm_content=Google+Reader).

“Sasol said Monday it may proceed with investments of up to $21 billion to build a gas-to-liquids facility and ethane cracker in Westlake, Louisiana.” This only makes sense in a $4 NG and $4 diesel world. [Upstream Online](http://www.upstreamonline.com/live/article1300072.ece)

“While budgets will grow 9 percent in international markets to $460 billion, North America spending will “take a breather” after years of growth and be roughly flat in 2013, Barclays found in a survey of more than 300 oil and gas companies.” [NBR](http://www.nbr.com/news/story?id=tag%3Areuters.com%2C0000%3Anewsml_BRE8B30SX) Budgets will have to be cut if Natural gas will remain below $4 in 2013 at [Fuel Fix](http://fuelfix.com/blog/2012/12/06/natural-gas-will-remain-below-4-in-2013-sp-forecasts/).

This is What a Recovery Looks Like at [CEN](http://coloradoenergynews.com/2012/12/this-what-recovery-looks-like/).

Global Gas Push Stalls at the [WSJ](http://online.wsj.com/article/SB10001424127887324355904578155591443631854.html). Chevron Not Expecting Fast Shale-Gas Growth in China at [WSJ](http://online.wsj.com/article/SB10001424127887324640104578160393345253824.html). (Google the titles to read)

The results were long awaited: US study says the more LNG exported the better at [Reuters](http://www.reuters.com/article/2012/12/06/us-lng-exports-idUSL4N09G0XU20121206).

Evaluating the Prospects for Increased Exports of Liquefied Natural Gas from the United States by the [Brookings Institute](http://www.brookings.edu/~/media/research/files/papers/2012/1/natural%20gas%20ebinger/natural_gas_ebinger_2.pdf).

A Long Term View On…. Natural Gas by [Greg Harmon](http://dragonflycap.com/2012/12/04/tues-am-2/).

EIA projects little change in U.S. coal production in 2013 ([EIA](http://www.eia.gov/todayinenergy/detail.cfm?id=9010)). A coal bull gives up: [Upsidetrader](http://www.upsidetrader.com/2012/12/02/a-miner-no-more/). BHP worries about climate change ([Bloomberg](http://www.bloomberg.com/news/2012-12-03/climate-impact-prompts-bhp-to-cap-spending-on-energy-coal-assets.html)). Seventy six coal pages at [WRI](http://pdf.wri.org/global_coal_risk_assessment.pdf). NRP’s latest [presentation](http://www.nrplp.com/default.aspx?MenuItemID=546&MenuGroup=_Investors&&AspxAutoDetectCookieSupport=1). Not that we like ACI (we don’t), but the industry [commentary](http://wsw.com/webcast/jeff73/aci/#) in the presentation was interesting.