Shell is Wrong: Global Oil Demand Can Only Increase. many of the major producers themselves (Royal Dutch Shell plc in particular) assert that global oil consumption will soon peak and thereafter begin its terminal decline. The basis of this belief is the growth of electric vehicle sales and the need to reduce oil use to combat climate change.
Yet for oil, what’s past is prologue: even with higher prices, both the Energy Information Administration (EIA) and International Energy Agency (IEA) modeling have repeatedly forecast more demand for as far as the eye can see. After all, oil is the world’s most important fuel, supplying 35 percent of all energy used. While the link between economic growth and oil use can be viewed from a variety of perspectives, the two clearly progress in tandem – a long studied link demonstrated in regression modeling and peer-reviewed studies.
Source:EIA
OPEC's Worst Nightmare: Permian Ups Production. An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.
OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.
Trump Pushes for Lower Oil Prices. U.S. President Donald Trump has pushed for lower oil prices in a Twitter statement published Wednesday.
Commenting on the tweet, Joseph Gatdula, head of oil and gas analysis at Fitch Solutions, told Rigzone it had “many layers”.
“The biggest impact will be to Saudi Arabia’s effort to cut production next month,” Gatdula said.
“Saudi Arabia is grateful for Trump’s support in the Khashoggi affair and not lowering oil output would publicly acknowledge the close relationship,” he added.
Putin May Talk Oil with Saudi Crown Prince at G20. Russian President Vladimir Putin may meet with Saudi Crown Prince Mohammad bin Salman at the Group of 20 summit next week and discuss issues including the oil market, the Kremlin said.
The talks will come just days before a crucial meeting of OPEC and its allies in Vienna, where Saudi Arabia will be trying to convince Russia to cooperate on curbing crude output next year following oil’s plunge back into a bear market. Talks between the two leaders helped secure historic production cuts in 2016 that rescued prices from a multiyear slump.
