Oil Production Shows Signs of Flagging

[mahatmakanejeeves]

Oil Production Shows Signs of Flagging

Markets | Commodities
As U.S. and OPEC pump out crude, other producers cut back

By Nicole Friedman
[e-mail]
@nicolefriedman
July 13, 2015 5:30 a.m. ET

The U.S. and the Organization of the Petroleum Exporting Countries have flooded the world with crude oil, sending prices tumbling. But the abundance has overshadowed declining production in areas—from Colombia to Norway to northern China—that experts consider vital to long-term supply growth.

Confronted with the plunge in prices, companies in these regions are delaying and canceling projects. Across the world, just six major oil projects received the green light in 2014, compared with an average of more than 20 a year from 2002 to 2013, according to Deutsche Bank. ... The International Energy Agency said Friday that non-OPEC supply growth would “grind to a halt” in 2016, with output due to fall in Russia, Mexico, Europe and elsewhere.

Oil companies need to replace between 5% and 8% of crude output each year just to offset shrinking production from old wells, analysts estimate. Currently, that amounts to at least five million barrels of daily output. Falling production in areas that have been outside the spotlight in recent months could send prices shooting up in the coming years, hurting consumers and damping economic growth, once the market works through the current overhang, investors and industry officials say.

“When you start cutting exploration budgets and you stop developing the next frontier…the seeds have been sown for the next bull market,” said Virendra Chauhan, analyst at London consulting firm Energy Aspects.
....

—Chester Dawson in Anzac, Alberta, contributed to this article.

[Wellstone ruled]

1. Ms.Friedman does these little

misleading pieces from time to time. Yes Crude Oil will Flag,that is down the road and not on the near time frame. Pickens and his Ilk are trying their damnest to pull millions of barrels off the market,just to maintain a $75/barrel price by year end. As you know,Iraq is the key in this business,and that is the real reason we destroyed that country. Iraq was a 6 million barrel a day supplier,now some were around less than a million a day. Mission accomplished. Next is iran,and they can do up to 15-20 million barrels per day. So watch the Nuke deal in Iran,the Oil guys are doing their best to kill it. It is a rigged game.

[OnlinePoker]

2. According to this, you're numbers are off.

Iraq is currently producing 3.37 million barrels a day which is considered their peak production. Iran's peak was in 1974 at 6.1 million BPD. They currently sit at 3.1 million BPD production.

https://en.wikipedia.org/wiki/List_of_countries_by_oil_production

I also heard on a business commentary this morning that Iran has over 35 million barrels in storage waiting for the sanctions to be lifted so they can sell on the open market. This will drop the price of oil even further than $53 per barrel it is right now (though the price may already be factoring in the possible Iran nuclear deal).

[Wellstone ruled]

3. Shell Oil CEO stated that Iraq was

capable of 6 million Barrels per day before Boy George blew the place up. And the real numbers coming out of Iraq are questionable due to our Defense Department doing the count. Iran has tons of crude to go no doubt,and sounds like Russia has been running interference for them as to getting product to market. Now we know why the likes of Ichan and Pickens want Iran's Nuke deal squelched. Going to get interesting in the next few months. Bottom line is all about the money.