With deepwater projects not getting done, expect the oil supply to dwindle in the coming years
“Davidson” submits:
- US Refining remains well below seasonal levels-gasoline inv remain near 4yr low(ignoring the 2017 hurricane shutdowns)
- US Crude Inv rises 2.2Mil BBL-3.3Mil BBL below 5yr mov avg
- US Crude Prod new high 12.8Mil BBL/Day
The US Crude Oil situation is basically unchanged from last week. Low refinery input and draws on existing gasoline inv shows we remain in the Fall shut-down period. Interesting to see new US Crude Production high of 12.8Mil BBL/Day with a 25% drop in the Baker Hughes/GE Rig Count from the Dec 2018 peak.
Companies continue to report surprising gains in efficiency producing more crude at the lowest cost ever recorded. The falling rig count as the US Crude Production rises attests to adoption of advanced technology and ‘Lean Mfg’ approaches in E&P.
