Oil Price Boom Expected Following Pandemic Crash

If history is a guide, an oil price boom is coming after the pandemic-generated crash.

While the near-term demand picture is highly uncertain, as people reconsider their travel and work habits, this latest bust, the worst of them all, is unlikely to hasten the demise of oil.

“The only way to get away from the boom-bust cycle is to get off of oil,” said Bob McNally, president of Rapidan Energy Group and the author of a book on the topic called Crude Volatility.That’s really tough because there are no scalable substitutes. As a result, we expect a thirstier world will collide into insufficient supply, and crude prices will have to rise sharply to balance the market.”

Continue reading

Largest Bakken Producer Shuts In Almost All Production

By David Middleton – Re-Blogged From WUWT

Continental Resources Halts Shale Output, Seeks to Cancel Sales
Devika Krishna Kumar and Liz Hampton, Reuters

Fri, 04/24/2020 – 04:20 AM

The largest oil producer in North Dakota has halted most of its production in the U.S. state and notified some customers it would not supply crude after prices dived into negative territory this week, people familiar with the matter said.

Continental Resources Inc., the company controlled by billionaire Harold Hamm, stopped all drilling and shut in most of its wells in the state’s Bakken shale field, three people familiar with production in the state said April 23.

Global oil prices have plunged because of excess supplies and tumbling demand due to the coronavirus crisis.

Continue reading

The Energy Disaster Kicking Into Full Gear

By SRSrocco – Re-Blogged From Gold Eagle

There’s more evidence finally surfacing in the media of the dire energy predicament the world is now facing.  The negative ramifications of peak oil and the falling EROI were going to hit the world economy within the next 2-5 years, but the global contagion has sped up the process considerably.  Unfortunately, the world will never return back to the energy consumption and GDP growth experienced in 2019.  I believe the peak of unconventional oil production has finally arrived… FOREVER.

Here are a few highlights describing the ongoing ENERGY DISASTER taking place

Continue reading

Why America’s Shale Oil Boom Could End Sooner Than You Think

Re-Blogged from Forbes, By Christopher Helman

America’s oil producers are nervous. They’ve had a great run the past few years. Domestic oil production is up 43% since 2008 to 6.5 million barrels per day, the highest level in decades. The majority of that 2 million bpd jump comes out of the two most successful new oil fields, the Bakken and the Eagle Ford. To develop these and all the other fields nationwide, the top 50 operators invested $186 billion in 2012, according to Ernst & Young. That was a record level of spending, up 20% over 2011.

You’d think that with drillers getting better, honing techniques and driving down costs, that a 20% increase in investment would bring about a more than commensurate

Continue reading

Mark Perry AEI   By Mark Perry

Re-Blogged From the American Enterprise Institute

Oil drillers in North Dakota pumped out 1.18 million barrels of oil per day (bpd) in September, setting another new monthly all-time record high for the state’s crude oil production (see blue line in top chart), according to oil production data released this afternoon by North Dakota’s Department of Mineral Resources. September marked the sixth straight month that daily oil production in the Peace Garden State exceeded one million barrels. Another important production milestone was reached in September, as average daily crude oil output from the state’s shale-rich Bakken oil fields topped one million CONTINUE READING –>