Happy Easter. Here is what is in the basket this morning:
"Rystad Energy estimates US annual oil production (crude oil plus lease condensate) to peak at 9.7 million barrels per day by September 2015, assuming WTI stays at 55 USD/bbl on average for the year. The average production for 2015 estimated at 9.65 million barrels per day could be an all-time high after its peak in 1970 with 9.64 million barrels per day as yearly average."
That's from a press release from the aforementioned Rystad Energy.
The previous record was set in 1970.
Magnus Nysveen, Senior Partner and Head of Analysis at Rystad Energy said: “The monthly peak is estimated at 9.7 million bbl/d by September 2015, assuming horizontal oil rig count for Bakken, Eagle Ford and Permian will stabilize at 400 rigs, which is 43% below peak. Production could be even higher depending on assumptions like (1) lower drilling costs, thus more barrels per dollar spent, (2) narrowing price differentials in North Dakota, and (3) reduced backlog of completed wells.”
This is not rocket science, but it is well above the pay-grade of our community organizer-in-chief.
President Obama declared we cannot drill our way to $2 per gallon gasoline.
The uninformed voters re-elected him.
Now they want to give him credit for cheaper oil prices.
Yes, there are many factors involved, particularly demand. A decrease in global oil use has helped lead to a glut in oil. But the price of oil fell in half in the last year. Drill, baby drill.
Barack Obama? Not so much.
Keep golfing dude.