With the price of West Texas Intermediate crude falling to its lowest levels since June 2012, you might be tempted to think that things couldn’t get any worse for the energy sector. After all, the U.S. energy revolution has just begun and oil production is forecast to increase until 2020 before topping out at 9.6 million barrels per day (bpd), an increase of 48% in daily production from 2012. How bad could things get if the increase in U.S. oil production accounts for 197% of the total increase in global… Read More
With the price of West Texas Intermediate crude falling to its lowest levels since June 2012, you might be tempted to think that things couldn’t get any worse for the energy sector. After all, the U.S. energy revolution has just begun and oil production is forecast to increase until 2020 before topping out at 9.6 million barrels per day (bpd), an increase of 48% in daily production from 2012. How bad could things get if the increase in U.S. oil production accounts for 197% of the total increase in global production? According to the BP Statistical Review of World Energy 2014, the United States booked a production increase of 1.1 million bpd last year. The rest of the world saw production fall by 554,000 bpd, for a net global gain of 557,000 bpd. #-ad_banner-#But all the good news in energy is assuming that the United States can keep production increasing. Cracks in the shale story are leading some investors to doubt that assumption, making falling oil prices the least of your worries. The Premature Demise Of… Read More