Oil Supply and Demand

“…U.S. liquids production in January and February has already been beating the 2011 average by an additional 660,000 barrels per day.  This has helped U.S. import dependence drop from 50.4 percent in January 2010 to just under 40 percent in February 2012.”  Wow, great stuff at Oil Dependents.

Demand per Oil Dependents:  “As a result non-OECD growth has added some 14 million barrels per day to world oil demand, or nearly 50 percent increase over the past ten years. Meanwhile, even with the OECD economies’ GDP growing a net 18 percent over that period, those countries’ combined oil consumption dropped about 5 percent or 2.5 million barrels per day.”

“Canadian oil production may rise by as much as 2.5 million barrels per day by 2020, blowing past previous forecasts, according to a CIBC report published Wednesday.  This implies Canadian crude output could cross 6 million bpd by the end of the decade. Current production levels have averaged 3.6 million bpd this year, according to the International Energy Agency.”  Experience suggests the oil sand production projections to be optimistic, but stronger horizontal drilling results would not surprise me.  For the first time, ever, I am concerned about too much oil.  I thought Gwahar was dying?  Moreover, this would give Canada Dutch disease.   Financial Post

With 200+ rigs in the Eagle Ford and Bakken, you’ll need only one guess as to the direction of this little chart:  Mark Perry

Some data points from the Bakken conference in Bismark:  Million Dollar Way