The always interesting “This Week In Petroleum” suggests that increased drilling could slow production declines in the US:
“The Lower 48 states onshore oil active rotary rig count, as measured by Baker Hughes, stood at 336 rigs on July 15, 29 rigs above the end-June number. While declines from existing wells are expected to result in a net decrease in production, increased drilling and higher well productivity are expected to soften the decline.”
Here is the chart which compares oil production with lagged change in rig count:
And, rig productivity continues to increase:
“This Week” also shows stock levels and days supply… Recent market chatter suggests a better gasoline demand s year is more than adequately met by supply… The days’s supply comparison to last year supports this:
And, crude oil stocks, while declining seasonally, are declining at a slower rate than expected earlier in the year:
Of course there is more in the excellent TWIP: http://www.eia.gov/petroleum/weekly/
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