There is no statistical evidence that US oil consumption increased as a result of skyrocketing tight oil production which one would expect in an oil boom.
Articles: tight oil (117)
A new, landmark report shows that hopes of a long-term golden era in American oil & gas production are unfounded.
Drilling Deeper: A Reality Check On U.S. Government Forecasts For a Lasting Tight Oil & Shale Gas Boom
Drilling Deeper reviews the twelve shale plays that account for 82% of the tight oil production and 88% of the shale gas production in the U.S.
The price plunge which began in mid-June when New York oil futures trading around $105 a barrel continued this week with oil touching $80 on Wednesday before recovering to close at $81.78.
Faced with the prospect of losing market share to tight oil producers in the US, OPEC has simply taken the most prudent business decision. Keep the taps open.
The key question is just how many more months or years will production of U.S. shale oil (more accurately call light tight oil) continue to grow.
When it becomes apparent that US tight (shale) oil has peaked, there will be a public confidence crisis because the media are parroting the oil and gas industry’s claim that shale oil is an energy revolution and game changer. Indeed, the game will change, but in unexpected ways.
CEOs of companies engaged in shale gas and tight oil drilling are undoubtedly aware of what’s going on in their own balance sheets, hype is an essential part of their business model.
Production flows from a given oil field naturally decline over time, but we keep trying harder and technology keeps improving. Which force is winning the race?
The story of America’s new energy abundance has been accepted uncritically by too many people.