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Wednesday, June 10th, 2020

US oil production decline in 2020 to be steeper than previously expected

Author:     DEVIKA KRISHNA KUMAR,
Source:     Reuters/CBS News
Publication Date:     Tue 3:22 PM, Jun 09, 2020
 Link: US oil production decline in 2020 to be steeper than previously expected
Stephan:   Oil will come back a bit, I think and will go up and down, but the overall trend is down. In my opinion, within 15 years, petroleum power will be a small fraction of what it is today. And what will happen?  It is already possible to see in cities that were once almost hidden the petroleum pollution clouds, that with the pandemic and decreased use of petroleum engines clear skies have returned. That is the future.
Oil pump jack

U.S. crude output is set to fall by 670,000 bbl/d in 2020 to 11.56 million bbl/d, the U.S. Energy Information Administration (EIA) said on Tuesday, steeper than the 540,000 bbl/d decline it forecast previously as drillers have slashed activity.

The agency now expects U.S. petroleum and other liquid fuel consumption to plunge 2.4 million bbl/d to 18.06 million bbl/d in 2020 compared with its previous forecast for a drop of 2.19 million bbl/d.

Oil prices collapsed this year as the coronavirus pandemic slammed global demand and restricted travel across the world.

The EIA said 2020 world oil consumption is expected to plummet by 8.30 million bbl/d to 92.53 million bbl/d, a sharper slide than the 8.15 million bbl/d previously forecast.

However, demand across the world has started to edge higher with countries easing lockdowns and stay-at-home orders.

“Initial data show the global oil market rebalancing faster than EIA previously forecast,” EIA Administrator Linda Capuano said in a statement.

“We expect [global oil] inventories to begin drawing in June, as a result of sharper declines in global oil production during June and greater […]

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