Tom Kirkman

Oil Heads for Its Best First Quarter Since 2002

Recommended Posts

You're just lurking out there waiting for the next Trump tweet that will bring WTI down to $65, admit it. That's what I'm doing, anyway.

  • Haha 2

Share this post

Link to post
Share on other sites

But I wonder if this is built on sand? We have already lived through one production cut during this slump. Apparently the surplus was dried up, then we found ourselves in the same situation again.

We can not depend on 'temporary' production cuts to end this persistent slump. 

The production cuts dry up the surplus, the price of oil rises, everyone increases production to take advantage of the price increase (including the jokers in the shale oil fiasco), we end up with surplus oil...and here we go again!

The is no confidence in a stable, long term price, so everyone cuts their drilling budget. Drill costs money while producing no revenue. Drilling is also the only real method to find 'replacement barrels'. Demand is fairly constant. At some point we run out of stored oil, have no way to replace it, the price spikes....welcome to Oilfield 2012 version 2.

  • Great Response! 1

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.