Current Oil Update, Oil Update
- Oil Market Update
10/08/13 A few years back there was a lot of talk about “Peak Oil” – how oil production had peaked and the implication was that the oil price was destined to keep climbing in perpetuity in response to endlessly increasing demand from an expanding population as supplies continued to dwindle.
There is an old but true saying that “necessity is the mother of invention” and what has happened is that oil companies have been and are heading off this impending crisis by using the latest technological innovations to make major new discoveries or extend the life of existing fields. Nowhere is this more true than in the US where a combination of new deep water exploration techniques in the Gulf, fracking and oil shale are creating a veritable bonanza that promises to take the US in the direction of oil self-sufficiency by the end of the decade. The downside of this for oil bulls, however, is the possibility of a glut whose potential to depress the price of oil could be magnified by the ever increasing threat of an economic implosion triggered by the debt mountain...
Posted at 12.30 pm EST on 8th October 13.