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Author Topic: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil  (Read 731 times)

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Offline thackney

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OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« on: November 11, 2019, 01:48:25 pm »
OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
https://www.forbes.com/sites/gauravsharma/2019/11/05/opec-sees-flood-of-us-shale-barrels-hurting-demand-for-its-crude-oil/#6566b49274b7
Nov 5, 2019

Non-OPEC supply is set to exceed crude oil demand over the next half-decade courtesy of a flood of U.S. shale barrels, according to none other than OPEC itself.

In its annual observations on the direction of the global oil market published on Tuesday (November 5), the 14-member producers' group cut estimates for the amount of crude it will need to pump over the next five years, thereby admitting that its market share will shrink until 2024.

"At the global level, growth is forecast to slow from a level of 1.4 million barrels per day (bpd) in 2018 to around 0.5 million bpd towards the end of the next decade," OPEC noted in its keenly-followed World Oil Outlook 2020 report.

In terms of headline growth, OPEC has lowered its projections for global oil demand growth to 104.8 million bpd by 2024, and to 110.6 million bpd by 2040. Only problem, as it acknowledges, is that U.S. shale producers will continue to flood the market.

"The main driver of medium-term non-OPEC supply growth remains overwhelmingly U.S. tight [shale] oil," OPEC noted. The producers' group predicts that by 2025, U.S. oil output, driven on by shale, would have risen by over 40% to a level of 17 million bpd; an upward revision of 3.1 million bpd over its forecast in last year's market assessment.....
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Offline Wingnut

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Re: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« Reply #1 on: November 11, 2019, 01:52:55 pm »
Am I wrong to think that this a good thing in that we are less dependent of foreign oil and also, we are sticking it to OPEC.    :shrug:
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Offline thackney

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Re: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« Reply #2 on: November 11, 2019, 01:58:21 pm »
Bizarre Headline.

First time in Economics History Large Supply pushing down prices is described as hurting demand.
« Last Edit: November 11, 2019, 01:59:18 pm by thackney »
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Offline Hoodat

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Re: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« Reply #3 on: November 11, 2019, 02:03:25 pm »
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OPEC Sees Flood Of U.S. Shale Barrels Hurting satisfying Demand For Its Crude Oil

There, fixed it.  And a perfect illustration of the weakness of cartels.  When cartels artificially cause a rise in price by limiting supply, others will step forward and increase production to take advantage of that higher price.  Cartel power is derived from the percentage of market share they control.  When they raise prices by cutting production, their share of the market automatically decreases.
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Offline IsailedawayfromFR

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Re: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« Reply #4 on: November 11, 2019, 02:42:11 pm »
It is a fool's errand to bet for the long run against OPEC.   It will return once the current overhype of Permian drilling plays out for oil, which it will at the low prices seen plus the lacking underlying strength of robust geology to continue high levels of drilling.

The biggest hope to continue to reign in its return to power is natural gas, but a lot of GTL projects will have to occur over the next decade, which is doubtful.
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Offline kidd

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Re: OPEC Sees Flood Of U.S. Shale Barrels Hurting Demand For Its Crude Oil
« Reply #5 on: November 11, 2019, 09:05:49 pm »
Quote from: The Ghost on November 11, 2019, 01:52:55 pm
Am I wrong to think that this a good thing in that we are less dependent of foreign oil and also, we are sticking it to OPEC.    :shrug:
I am thrilled to death about this.

If Mideast oil is less profitable, the funding for terrorism dries up soon after.
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