Post by
smallcaptdr on Aug 19, 2022 12:53pm
Supply tightness, still?
First, we had Libya restart their Oil Fields in July adding another 1.2Mil bbl/d and most recent Russia has turned up the tap to supply more, then we have 730 Drilling Rigs in the US either drilling or going into production and we have OPEC members adding more volume and on top of that, China has recently discovered their first offshore shale Oil and NG and we are heading into slower times to the point of a recession and China is also having their problems which will hurt demand. And let's not forget that the units that use Oil are cars and there are over 16Mil electric cars on the road and this number could double by next year. Ford alone builds 2 mil electric vehicles a year.
At some point, the word tightness will leave as a reason for higher Oil. Just something to think about. JMHO
Comment by
Moemoney42 on Aug 19, 2022 1:14pm
Exactly Red.. and what Mr. Small forgets is the natural decline of a given well/field will drop by a minimum 10% per year.. so we need to find an additional 10 million barrels every year to stay with flat global production.. a million barrels from Iran or Lybia for that matter are a drop in the bucket.. of course he doesn't post anything about that fact does he.. LOL..
Comment by
dllscwbysfn on Aug 19, 2022 1:38pm
Clearly demand is not going away anytime soon. I think EV and all green power will simply have a tough enough time just keeping up with population growth. 200,000 more people on the planet by the end of the day!!! Another 400,000 people on earth by the end of the weekend. Better work some ot to get those windmills up,lol.
Comment by
red2000 on Aug 19, 2022 1:51pm
Listen to the Doctor : https://www.youtube.com/watch?v=Se0DIlKw5fA&ab_channel=RealVisionFinance Start at 46 min. 27 sec.