US Shale Oil – The End of the Bubble?
Published in Les Econoclastes
(France) on 7 February 2015
by Nicolas Meilhan (link to original)
The rate of installation of oil rigs in the U.S. is plummeting since OPEC’s decision to maintain its level of production last Nov. 27 and to keep the price of a barrel of oil under $70.
If some rejoice about this 25 percent drop in the rate of installation of oil rigs in less than three months, equal to an increase of oil prices at midterm, the latter could nonetheless put an end to the production of U.S. shale oil, which could decrease as soon as 2015.
The fall in U.S. shale oil production will coerce a decrease in global oil production, which outside the U.S. has fallen since January 2011. Talking about a global “peak oil” production seems premature and that’s a line I am not crossing … right now.
If some rejoice about this 25 percent drop in the rate of installation of oil rigs in less than three months, equal to an increase of oil prices at midterm, the latter could nonetheless put an end to the production of U.S. shale oil, which could decrease as soon as 2015.
The fall in U.S. shale oil production will coerce a decrease in global oil production, which outside the U.S. has fallen since January 2011. Talking about a global “peak oil” production seems premature and that’s a line I am not crossing … right now.
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