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Page added on March 22, 2017
Under-$50 WTI Oil Price Will Be ‘Short Lived’
The WTI oil price of under $50 per barrel won’t last for long, according to oil and gas analysts at GMP FirstEnergy.
“We think the foray below $50 per barrel (WTI) is going to be short lived as it is abundantly clear that the global crude oil market has less supply available now than it did just two months ago, even after accounting for the gradual ongoing increases in U.S. crude oil supplies,” GMP FirstEnergy analysts said in a research note sent to Rigzone.
With global demand rising and expected to rise further, any increases in U.S. crude oil supplies between now and the summer, at a minimum, are going to be easily quashed by less supply from other nations and the increase in demand, the analysts said.
“We believe there is no escaping this arithmetic and that global inventories, even including those in the United States, are going lower over the course of this year,” the analysts added.
In the research note, GMP FirstEnergy conceded that it was in awe of the speed of the turnaround in U.S. crude oil supplies that is taking place.
“No secret is the fact that rig efficiencies and productivities are much higher than even a few months ago and the work of one rig today can do the work of at least two or three one year ago,” oil and gas analysts at the company said.
11 Comments on "Under-$50 WTI Oil Price Will Be ‘Short Lived’"
twocats on Wed, 22nd Mar 2017 9:51 am
man these guys are getting quite the sugar-high with the cake eating.
“Oh there’s no denying I can suck more oil out of the ground with my d*&k than the piece of shit rigs from a year ago but we are almost completely out of supplies because so many countries have decided to never produce another barrel of oil again. Period. Full stop.”
shortonoil on Wed, 22nd Mar 2017 10:48 am
Price is going up is the same story they have been telling for almost 3 years. Its not, refinery yields are going down too fast for that to be possible, and they have been going down for the last 12 years. Running an industry on wishing and hoping is hardly a winning strategy!
http://www.thehillsgroup.org/
Apneaman on Wed, 22nd Mar 2017 1:59 pm
” according to oil and gas analysts ”
“GMP FirstEnergy analysts said”
“the analysts added.”
“oil and gas analysts at the company said.”
I remember the old days when people, like analysts, had names.
Maybe it’s a security issue? Protecting them from Putin and the other evil doers.
Boat on Wed, 22nd Mar 2017 2:40 pm
There is no lack of oil or those willing to chase it. What is happening is simply a shift in producers. At $40-$50 shale just happens to do just fine thanks to improved methods and tech. Just a couple of years ago fracking was thought to need $80 oil. That ended up being correct for some producers but others are expanding rapidly at 40-50. The countries of Iraq and Iran will continue to take market share as well.
Boat on Wed, 22nd Mar 2017 2:43 pm
two cats,
Hang on to your sanity dude. You sound as if your headed off the edge. Until there is an affordable alternative oil will be around, climate change be dammed.
GregT on Wed, 22nd Mar 2017 3:13 pm
“At $40-$50 shale just happens to do just fine thanks to improved methods and tech. Just a couple of years ago fracking was thought to need $80 oil.”
135 oil companies are on edge of bankruptcy.
http://fuelfix.com/blog/2016/09/12/135-oil-companies-are-on-the-edge-of-bankruptcy-so-why-is-that-good-news/
As U.S. shale drillers suffer, even the bankrupt keep pumping oil
http://www.reuters.com/article/us-usa-energy-bankruptcies-idUSKCN0WY3JU
U.S. oil industry bankruptcy wave nears size of telecom bust
http://www.reuters.com/article/us-usa-shale-telecoms-idUSKCN0XV07V
The Real Reason Oil & Gas Companies are Going Bankrupt: Financing Fracking Projects Became a Ponzi Scheme
“The real reason energy companies are going bankrupt is more technical. Reserve base lending for unconventional reservoir projects became a ponzi scheme.”
http://wolfstreet.com/2016/09/26/the-real-reason-oil-gas-companies-are-going-bankrupt-financing-fracking-projects-has-become-a-ponzi-scheme/
Bankruptcies continue in US shale oil industry
“Even if crude prices return to $50 to $60 a barrel, half of the shale companies will be unable to stay in business, according to Fadel Gheit, an energy analyst at U.S. financial company Oppenheimer.”
http://asia.nikkei.com/Business/Trends/Bankruptcies-continue-in-US-shale-oil-industry
GregT on Wed, 22nd Mar 2017 3:21 pm
“man these guys are getting quite the sugar-high with the cake eating.”
What else would you expect from RIGPORN?
GregT on Wed, 22nd Mar 2017 3:32 pm
RIGZONE,
About us:
‘We connect you to the news you are looking for, the career opportunities you want, and the actionable insights and data needed to tackle any industry and career challenges that may come your way.’
Boat on Wed, 22nd Mar 2017 4:41 pm
greggiet,
That is great information about oil investors and producers that needed a higher priced oil to survive. Since August US production is up 600,000 bpd. That’s what I look at. Finances of failed companies is not something I care about. But then I am not a doomer.
GregT on Wed, 22nd Mar 2017 5:27 pm
“Since August US production is up 600,000 bpd.”
And since July of 2015 it’s down almost 500,000 bpd.
“But then I am not a doomer.”
No Boat, you’re willfully ignorant. You only look at what you want to see, which does not reflect the reality of the situation.
Gregorian Chant on Thu, 23rd Mar 2017 9:42 am
Very good news, Komrade! Living here behind the curtain, we is wanting very high price for crude. Go bankrupt Yankee fracker!