Oil production and inventory levels are flush. New production demands high prices while emerging market demand growth has met declining OECD demand. The shale revolution continues as mother nature and refinery fires have energy prices higher this morning.
Oil Rises as Isaac Shuts Output; Gasoline Gains on Refinery Fire at Bloomberg. Over the weekend Isaac’s project path moved west to over the oil and gas producing part of the the Gulf of Mexico and New Orleans (Business Insider). “By mid-day Sunday, the U.S. government said that daily oil production in the Gulf was down 24 per cent and natural gas production was off 8 per cent.” Globe and Mail
Last Friday’s QEP Energy’s Bakken purchase has investors screaming over the low valuations of most of the Bakken producers. One look by Zman’s Energy Brain.
More on the monster Bazhenov: Will Russia replicate US success in tight oil development? at Platts.
U.S. Rig Count: -16 to 1,898 at Haynesville Play.