Remember this post next year when oil & gas prices are through the roof once again:
12-2-2015
http://finance.yahoo.com/news/oil-prices-under-severe-pressure-165202897.html
U.S. Inventories Near 500 Million Barrels
The claim that near-term prices are not low enough to incentivize floating storage is legitimate, but it doesn’t explain away the current reality in the Gulf of Mexico: 51 vessels carrying around 38 million barrels of crude are sat waiting to discharge as of yesterday
Nor does it explain the idling ships seen across the world recently, from
Singapore to China to the Arab Gulf.
All the while,
total US crude inventories sit at 488.2 million barrels, 105 million barrels higher than this time last year, and 2.7 million barrels shy of the all-time record of 490.9 mn barrels set earlier in the year.
(psst….don’t forget we also have 695 million barrels stored in the strategic petroleum reserve, which equals 137 days of net petroleum imports – although the Senate and House of Representatives
agreed on a deal yesterday to sell 66 million barrels of it from 2023 to 2025 to raise funds).
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Let's not forget about Nat Gas as well:
http://news.yahoo.com/americas-biggest-gas-field-finally-succumbs-downturn-061234277.html
America's biggest gas field finally succumbs to downturn
The drilling rigs are gone from the hills surrounding this Pennsylvania town of 30,000. The hotels and bars are quieter too, no longer packed with the workers who flocked in their thousands to America's newest and biggest gas field.
The drilling boom of the past seven years is over, even though thousands of existing wells in the Marcellus region still produce a fifth of U.S. natural gas supply. Now, exclusive data made available to Reuters points to a slump in drilling that could hit production next year, defying government and industry expectations of a further rise in output.
Recent months are subject to revisions, DrillingInfo said, but a retreat of such magnitude, combined with falling output from older wells, would mark a turning point for the Marcellus - and the whole U.S. gas market.
The Energy Information Administration now forecasts overall U.S. gas output to hit a record in 2016 for the sixth year in a row. A drop in Marcellus production could snap that streak and help prop up prices that have fallen by two thirds since 2010.
U.S. natural gas production has risen 30 percent since 2008 when the development of hydraulic fracturing, or fracking, and horizontal drilling unlocked vast shale gas reserves, swamping the market with new supply and causing a collapse in prices.
While gas keeps flowing, the drilling crews are gone and with gas prices near 14-year lows, producers have choked hundreds of wells in the region in the hope that falling supply will stem the slide.
Several gas producers, including Chesapeake Energy and Cabot Oil and Gas, have announced production cuts in the region.
Inflection Energy, a Denver-based privately-owned company with an office in Williamsport, has cut production from 50-70 percent of its wells, company spokesman Matt Henderson said.
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http://www.bloomberg.com/news/artic...o-deliver-crude-oil-to-eastern-canada?ref=yfp
Enbridge Line 9B Said to Deliver Crude Oil to Eastern Canada
One eastern Canadian refiner began receiving crude oil via Enbridge Inc.’s newly reversed Line 9B Tuesday, according to person familiar with the matter.
About 60,000 barrels of crude was received as of Tuesday, including Bakken oil from North Dakota, said the person, who asked not to be identified because the information isn’t public.
Enbridge began reversing the 300,000 barrel-a-day pipeline in 2011 as refineries in eastern Canada looked to tap into cheaper oil being produced in western Canada and the U.S. Midwest.
The new flow has redirected some crude that used to go to Cushing, Oklahoma, the largest storage hub in the U.S. Enbridge’s Spearhead pipeline, which runs to Cushing from Illinois, will run below capacity in December and January, the first time that has happened in nearly two and a half years.