“To keep production flat the industry needs to replace close to 20 bcf/day of production. But analysts point out that the industry doesn’t produce enough cash to fund this replacement at current prices…” Globe and Mail
“On a year to year basis, 2012’s oil demand was initially projected to grow by 1.5 million barrels per day in July 2011, but now it is expected to increase by only 800,000 barrels per day. Since we have not yet reached the mid-point of 2012, we will not be surprised to see demand in 2012 increase by only a few hundred thousand barrels per day. If the sovereign debt crisis in Europe is not resolved in the next six months and the U.S. economic recovery doesn’t accelerate, the weakening pace of economic activity in the Asia/Pacific region could contribute to little or no oil demand growth in 2013. That would seem to be what the stock market is saying, and would certainly present a challenge to the energy business.” Rigzone
The world’s energy picture did not have to evolve this way. Higher prices could have forced larger consumption changes. But peak oil in the sense of gloom is quaint idea. Mark Perry Shale Play in Western Siberia is 80 Times Bigger than the Bakken: Oil Price
About those tax ‘loopholes’ for oil companies. Forbes
Chesapeake in talks to sell their midstream business. Bloomberg
Oh, and happy birthday to our 2 year old daughter!