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OPEC Who? US Crude Oil Production Hits Record High
US Crude oil production shows absolutely no sign of slowing - despite tumbling rig counts - as this morning's data shows the US produced 9.19mm barrels/day last week - the most since records began in 1983.
Since the OPEC meeting in November, US crude production has only accelerated...
The global 'game of chicken' continues.
Charts: Bloomberg
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Not sustainable
Why?
Ah, it's temporary!
Hah ha ha ha ha ha
maniacal laughter
Is that before or after BLS adjustments?
Yep, just like old age, sooner or later you'll get over it.....
Just like old age...........lots of downside left.
The US will become a commodities exporter, like 3rd world nations.
...like OTHER 3rd world nations.
I wish I had somewhere to store lots of oil, and a place to sell it in 10 years. I'll bet the banks are getting ready to lease the tankers again and park them somewhere.
The QE low interest rate financed fracking boom is at the source of oilprice collapse. Instead of spreading the production out over a long period, the cheap finance bonanza has brought max. production in min. time to the market. Result: Nobody in the US makes real money. Consumers pay cheap today to pay expensive later (those working in the oil industry may loose their jobs in between).
Two guys decide to go into business selling watermelons. So, they buy a truck and go to the local farmer where they buy a truckful of watermelons for $1.00 each.
They then go into town and sell all the watermelons for $1.00 each.
After several days of this, one guy says to the other guy: "Hey, we're not making any money." The other guy replies: "Yeah, I know. I think we need a bigger truck."
That's why it's not sustainable...
they don't need to pump to be profitable, they just need to pump to make the payments...
at least, the ones that are over-leveraged do...
but, not all of them are over-leveraged and they're pumping to make money, too
because, they all need the money... ALL of them...
race to the bottom
Man,
We Americans really like our credit fueled bubbles. What is the root cause of this? Yes, artificially low rates and repression of risk pricing help, but there is something deeper.
loses are write offs?, hmm. let me think, hmmm. keep'er flowing cause the well is already flowing, yeh, might as well, cause, well, hmmm. let's see - um, where the fuck is it gonna go? hmmm, to empty carriers, hmmm. say we got a problem here. nobody wants the black gold anymore. call citi, they will put er on a carrier and dock'er...
oh, deeper thought. DEPARATION, unless, oh there is russia...
Nope.
Here in California's oilfields, wells are being capped. That's production being taken off-line. The big companies would rather sit on the oil waiting for higher prices than pump at a loss.
With the new reg's in Cali it's much cheaper to cap than to pump and you can write it off as long as the wells are viable.
Big oil is just waiting to pick up asset in liquidations.
Sarah Barracuda was right all along doncha know! That window licker with tits said that if we pumped uncontrollably everywhere in the US, the price of gasoline would go down. USA! USA! USA!
ah but the "smart one" has a buddy in dc and buys a fleet of semi's and gets the watermelon subsidy bill passed for disadvantaged beaners and retires happily while the other melon sellers fill bk and go on the 'dole'...
all puns intended
... So the next day they get a big idea. They buy some baseball bats, paint all the watermelons black, drive to town and put up a sign that says "Obama eggs, $5 a whack."
They retired after the harvest.
Seriously fucking funny.
Wrong, but funny.
Ignore my cycle low in Oil at 28$ next year........its only doom n gloom.....BWAAAAAA.....on a lighter subject American Idle is on tonight for the peeps.......football is over
Only college ball is over??
oh.....the pros.....my freudian slip......hehhehhehe
US oil producers' marginal cost of production is well above the price they are and will be receiving. Not sustainable. Also, the geology requires more wells to be drilled given fast decline rates. Drilling new shale wells is a money-losing proposition with current and futures pricing.
The cure for high prices is:
High Prices.
[Victims of our own success in attemtping to become energy independent...]
Peak oil guys are the worst people. Most people don't remember that the government, big oil, and mainstream geologists were all in on peak oil idea back in 2006. It was "crazy fringe" geologists and wildcatter yokels who actually had the cajones to follow through on their convictions and use the new techniques. The bonanza is over now and everyone who was late to the game will get crushed and rolled into a big oil conglomerate.
Most people don't know that we still have a lot of oil and minerals that are conventionally recoverable but the government owns the land, or in the case of offshore, controls the leases. things will keep going in the same direction as long as the insane clown posse runs the show....
Houston we have a data lag here...
Why does the upswing pretty much coincide with the onset of the financial crisis?
Maybe the $16 Trillion bailout in 2008/2009?
Free moniez bitchez...
.......purely happenstance I'm sure, how could ZIRP and high commodity prices have anything to do with it?!
there's more crude and natural gas in the northern slope than anywhere on planet earth.
fraaaaaaaaacking hell !
A real leader would bail out the shale companies, save the job's, and tell the Saudi's, fuck off.
Instead, we bail out bankers...
what about all the jobs shipped to the 3rd world? and the import of chinese product?
if you want nationalization--then you have to cut off all ties....but i dont like most americans, why would i want such a co-dependent alliance with them?
if you nationalize...you have to back the elected leaders....no more pot shots from the bleachers
which way do you want it?
Huh?
Bailing out the shale companies, so they can keep paying the interest on their junk bonds is identical to bailing out the bankers...
Maybe worse. ROEI.
reminds me of that brittish chap who sold his countries gold just before the run-up. OOooOoOOPPS!
Gordon Brown picking his nose
He also told the market in advance he was going to do it
That guy is a complete C..T
C U Next Tuesday?
T'what did the UK owe for the pleasure of such a cunning stunning stunt, hey?
panic Cashflow!!!!
cash or crash
i NEVER would have believed that was possible
Honk if you truly believe we produced more oil in the last week................silence
Given the source is Bloomberg -- you don't suspect that the numbers were 'rigged'?
Expect those numbers to continue to rise for awhile, there is still a large backlog of wells that have been drilled but are not yet completed.
Dbl post
Wanna see the USA produce 25 million barrels a day?
"60% of global production" as demand collapses?
Ahh...the good old days....
I don't doubt it.
Those bunch of earthquakes in Texas last week?
I wouldn't be a bit surprised if the engineers just said, "ok, we can't drill more wells, but we are going to triple the pressure pumping horsepower and the number of frac stages to increase our output from the currently budgeted wells"
last gasp before 2015 budgets.
Rainman's cheapass mother-in-law now buys her gas in 3 gallon increments.
Delayed purchases on expectation of cheaper prices < deflation > confirmed !
Very funny.......reminds me of my M-in-L.
I bet she drives all over kingdom come looking for one or two cents savings per gallon, too...
yeah, I know the type...
I think we will start to see some unrest in the Middle East from the oil exporting countries. Oil is a huge portion of their budgets - just like in Venezuela - and while individual companies (and banks) in the US are at risk -- entire countries will be suffering in the Middle East. Iran made this clear, and I agree with the concept.
Quotes from Western Union:
- Soggy news on the U.S. consumer dealt a setback to Fed rate hike expectations, causing the buck to do a U-turn after notching news highs overnight. The 0.9 percent fall in retail sales in December was more than expected and augured cautiously for U.S. fourth quarter growth.
- So-called core spending also disappointed with an unexpected fall of 0.4 percent. The yield on the U.S. 10-year Treasury slipped further below 2 percent, the bond market's way of expressing receding expectations for a Fed rate hike.
- The dollar's fundamental bullishness is seen at risk if Friday's U.S. inflation report should underwhelm and underscore the Fed's patient approach to boosting lending rates. Still, weakness abroad, the other side of the dollar's coin, should remain a key pillar for the foreseeable future.
"US produced 9.19mm barrels/day"
And consumed 19
oil 20:
Pacific Investment Management Co sees lower oil prices lasting for a longer time, with the bond firm cautious on oilfield services companies even as some high yield energy sector...
more:
http://tersee.com/#!q=oil&t=text
Stands to reason you have to pump more low priced oil to pay your debt service.
And there you have it, America misallocating its resources to pay debt service to Wall Street.
100% correct! This pumping frenzy is a sure sign of how badly in debt the oil prodcuers are. And your comment is the final word on it! Leverage baby! Junk Bonds Baby!
US Crude oil production shows absolutely no sign of slowing - despite tumbling rig counts....
Production will come down with less rigs in time. And once offline those rigs will be cemented shut and not produce again.
Ding Ding Ding!!! Here is the winning comment of the day to prove you people have absoluetly ZERO idea what you are talking about!! Cementing in rigs?!?!? just stop talking now please.
"you people"? What do you mean "you people"?
Soul Glow to GF: What do you mean "you people"?
US produced 9.19mm barrels/day last week - the most since records began in 1983.
US consumption is more than 19 million barrels a day and US imports about 7 million barrels a day.
With the fall in oil prices, US consumption can easily increase to over 20 million barrels a day.
Chinese oil imports surged by 400,000 barrels a day in December. January may see a further surge.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRIMUS1&f=M
I feel like we have entered the perfect storm in the energy markets.
Price goes down...increase volume! Price goes down more...increase volume!
Bring on $20.00
$20 oil and the Dow goes to 5k. $20 oil would signal/trigger a depression. Too many jobs would be lost in the oil sector, too much production would be halted, banks would not have performing loans to the energy sector, oil producing nations would be bankrupt, and Janet Yellen would hyperinflate the dollar to try and stop it.
"the most since records began in 1983." ???
Records exist for before (although the definition of crude might have changed a bit to include NGPL biofuels and all that), and even if close, US prod is still below its peak that occured end 1970 :
https://i0.wp.com/upload.wikimedia.org/wikipedia/commons/c/c5/US_Oil_Pro...
Gold is setting up for a move into the 1:30 close. The short term chart, trend, and volume patterns say up. The miners say down. Could go either way.
Hahaha! Everything looks just wonderful for US oil.
cluck, cluck!!
Perhaps some back door QE for oil junk bonds and derivatives taking place?
So with 14 month low level of wells...we produced more? Suggests there were a large number of very weak producing wells.
Correct: You sir, get a cookie.
Also btw I noticed that you linked that Gallup article on U.S. (lack of) Entrepreneurship in a comment earlier today, I wasn't surprised the Tylers latched on to it.
Good find, have another cookie.
Have fun investigating Global debt. Click on your favorite country. LOL
http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=joint-external-debt-hub
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If you go back and investigate "Oil Rig Counts Saudi Arabia" You see that filthy Saudis were planning on significant rig increases back in 2013, to be ready by 2014.
No surprise the production went up.
Should have seen this coming, somebody, and let us know.
•?•
V-V
1. Many producers are hedged out a year , so they will produce and deliver as promised.
2. You probably don't start new fracks, but old fracks are a bitch.
US Oil has no choice. They are levered up, and have large debts to service, it's pump or go Bankrupt! Look at recent oil sector investments, using bonds, loans and junk bonds. The last few years they have levered up to the max. all based on 100 dollar oil forever. They pump because they can not stop. What would happen if they tried to shut down and weather this price storm? You know what, loans called in, bonds defaulted on, epic banking crisis. Black Swan stuff!
https://www.youtube.com/watch?v=37OWL7AzvHo
While the US produced 9.9m bpd, I wonder how many million bpd did the US import? Last I heard we were burning up about 19m bpd but that might have gone down.
U.S. crude production is being done with borrowed money which is about to dry up, just like the wells for which the money was borrowed.
http://www.globaldeflationnews.com/shale-oil-companies-on-the-ropes-firs...