Bullboard - Stock Discussion Forum PENN WEST PETROLEUM LTD. T.PWT

Energy Oil & Gas E&P

"Penn West Petroleum, based in Calgary, Alberta, is an independent Canadian energy company focused on the exploration and production of oil and natural gas resources in Saskatchewan, Alberta, and British Columbia. At the end of 2015, the company reported proven reserves before royalties of 208 million barrels of oil equivalent. Daily production averaged 86,000 barrels of oil equivalent in 2015,... see more

Add To Watchlist

TSX:PWT - Post Discussion

PENN WEST PETROLEUM LTD. > Depletion Versus Decline Rates And Why It's So Important

View:

Post by makedonka on May 01, 2017 7:55pm

Depletion Versus Decline Rates And Why It's So Important

"The reason why this is so important to understand is that without proper upstream capex in adding additional reserves, producers globally will have to start decreasing production higher than expected to combat the spiking depletion rates. As a result, the non-OPEC ex- US and Russia decline rates will eat away most of the production growth coming out of OPEC, US, and Russia. If the oil market continues to grow, it will inevitably lead the market into a supply deficit. This is why the IEA warns a potential supply shortage in the future."

https://seekingalpha.com/article/4067591-depletion-versus-decline-rates-important?app=1&isDirectRoadblock=false