Oil production is all down hill from here

[Binkie The Clown]

U.S. oil production decline has begun.

It is not because of decreased rig count. It is because cash flow at current oil prices is too low to complete most wells being drilled.

The implications are profound. Production will decline by several hundred thousand of barrels per day before the effect of reduced rig count is fully seen. Unless oil prices rebound above $75 or $85 per barrel, the rig count won’t matter because there will not be enough money to complete more wells than are being completed today.

Tight oil production in the Eagle Ford, Bakken and Permian basin plays declined approximately 111,000 barrels of oil per day in January. These declines are part of a systematic decrease in the number of new producing wells added since oil prices fell below $90 per barrel in October 2014

Complete piece with lots pf pretty charts and graphs for your edification and amusement.

[Gothmog]

1. There has been a significant amount of production deferred due to oil prices

Oil prices are picking up and so will production. Some formations are economical at $80 a barrel and these fields will be coming back on line as prices stablize

[Binkie The Clown]

2. Toto, I've a feeling we're not in Kansas any more. n/t

[NeoGreen]

3. A Podcast that has an Independent Petroleum Geologist discussing this issue..

... can be down loaded here:
http://kunstler.com/podcast/kunstlercast-260-petroleum-geologist-art-berman-on-shale-oil-and-gas/

Independent petroleum geologist Arthur Berman says of the shale oil and shale gas scene: “What we’re reading in the newspapers everyday is completely distorted. It couldn’t be more wrong and delusional.” JHK and Art delve into the finer points of the so-called shale oil miracle. Can anybody actually make any money in it? What are the long-term prospects? How are they raising capital to do it? We explore some deep, dark corners of this largely misunderstood phenomenon and its relation to the wishful thinking economy of our time.

JHK has interviewed Berman a number of times in the past few years.

[FBaggins]

4. "couldn’t be more wrong and delusional"

It's worth noting that this statement is more accurate when applied to Berman's own predictions ove the last several years.

[Binkie The Clown]

5. I see TV ads promoting "oil for the next century"

and I just have to laugh at them. I think maybe what they are trying to do is get ordinary people to invest in the "oil boom" since they can't raise money any other way these days with their bonds rated "junk". They need more suckers to send them money so they can postpone bankruptcy by a few more months.