“Problem is, the rebound last year was fuelled at least in part by an average deficit of 800,000 barrels a day for the year as a whole. This year, that has reversed with an average surplus of 1.9 million barrels a day during the first five months of the year.” At least shoulder season is over. Financial Post
The EIA is wildly underestimating horizontal drilling:
The oil price will determine the pace of development, but looks like a million barrels in the Bakken by 2015: Prairie Business Certainly the Eagle Ford production will higher than the Bakken under every oil price scenario with 60 more rigs running on more productive land commanding premium pricing (Gonzales Cannon). Plains just announced quarter over quarter oil production up 17%, no doubt driven by the Eagle Ford (Yahoo). With the weather cooperating and the industry backlog under control, growth with be a big theme as the E&P’s announce second quarter results. Utica, Mississippi lime, and the smorgasbord of wolf/dog/bone Permian plays? Anyone?
Pick you stocks, and countries, carefully. Why Brazilian Oil Struggles to Catch Fire at the WSJ.