Originally posted by bfw:
Originally posted by g-man:
Originally posted by steve8:
Originally posted by ThistlinTom:
I believe that the US is producing 10 MM bbls a day and importing only 2.5 MM bbls a day and overall is a net exporter of energy.
Your production number is correct, just recently surpassed the 10 MM bbls per day, but the imports are 8 MM bbls/day. That is the average of the past 4 weeks, which is down about 4% from the same period last year.
You guys need lots of heavy crude, but produce little. Enter Canada, Venezuela and Mexico.
Exactly. The Americas make alot more oil than generally given credit for. Oil prices may have been trading up but what's the possible upsidenin putting money in oil? I don't see oil going back to the 100+/barrel range anytime soon esp w markets coming down.
Actually, the US is getting too much credit lately for its rising production.
The world uses about 100 million barrels per day. The US produces about 10 million or 10% of that.
The issue is production is declining in most other nations and OPEC is limiting supplies along with Russia. Venezuela is on the verge of chaos and almost 2 million barrels per day could be lost if they go offline.
The Permian alone (which is where production increases are coming from) will not be able to match world growth alone.
So $100...not this year...but WTI hitting $80 is a significant possibility. This during a time when oil equities are priced for lower levels. In fact, the energy index recently had its lowest level of market cap vs the overall index ever!
So, all oil equities need is for sentiment to change, shorts to cover and move on and they could see significant appreciation.