Tuesday, July 7, 2020

Forbes - The Next Paradigm For Oil Is Here

The U.S. tight oil rig count is about 25% of what is needed to maintain 2019 levels of tight and total oil production. As U.S. supply plunges, the over-supply paradigm of the last 5 years may finally change.

The U.S. tight oil rig count is now 155 (Figure 1). About 600 rigs are needed to maintain tight oil production at 7 mmb/d and U.S. total output at 12 mmb/d. That means that tight oil will irreversibly fall to less than 5 mmb/d and U.S. to less than 8 mmb/d by mid-2021.

https://www.forbes.com/sites/arthurberman/2020/07/06/the-next-paradigm-for-oil/#2f1c6ef76c8b

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