11-01-2020, 10:57 PM
The US grew production by over 8 million barrels per day (from 5M to 13M) from the end of 2008 to the beginning of 2020.
Worldwide crude demand grew from 85 million to 102 million during that same period. So the US contributed nearly 50% of the world's increased production.
US production has already dropped by 2 million barrels per day since March, and is headed lower due to the rig count and frac spread declines and the other reasons I mentioned previously.
I don't believe the US will ever hit 13 million barrels a day of production again, and certainly not at $40 or even $60 oil.
If COVID eventually passes and the worldwide economy recovers, where do you see the price killing supply response coming from?
Worldwide crude demand grew from 85 million to 102 million during that same period. So the US contributed nearly 50% of the world's increased production.
US production has already dropped by 2 million barrels per day since March, and is headed lower due to the rig count and frac spread declines and the other reasons I mentioned previously.
I don't believe the US will ever hit 13 million barrels a day of production again, and certainly not at $40 or even $60 oil.
If COVID eventually passes and the worldwide economy recovers, where do you see the price killing supply response coming from?