Oil & Energy Investor by Dr. Kent Moors

What You Need to Know about the Pressures on U.S. Shale Oil

by | published January 22nd, 2020

Toward the end of 2019, several studies appeared indicating that U.S. shale oil production was peaking. Several of these further predicted a rather steep decline in overall volume was coming.

Now, to put matters in perspective, there is hardly the prospect that shale oil will be cratering. Everybody continues to acknowledge that the aggregate totals will advance this year. Nonetheless, the average estimate of how much that rise will be has been tempered. The consensus has moved down to between 400,000 and 500,000 barrels a day from initial projections in excess of 700,000.

Initial (and rather premature) estimates for 2021 are calling for even more constricted advances, with several putting it at only 100,000 barrels a day of new production.

Yet placing this in perspective, daily U.S. totals now regularly lead worldwide production at more than 12 million barrels. Some analysts are suggesting a surge to more than 13 million during 2020.

It’s what is shaping up after this year that has the industry on edge…

Recent Geopolitical Events Mean Some Major Movement in Oil

by | published January 19th, 2020

Action to Take: Buy an April 2020ProShares UltraShort Bloomberg Crude Oil (SCO) $12 put (SCO200417P00012000). Use a $2.10 buy limit order good until filled.

Let it never be said that events in the Persian Gulf don’t throw monkey wrenches into my foreign meetings with members of my global contact network.

The U.S. air strike that killed Iranian General Qasem Soleimani has resulted in our scrapping much of the accepted agenda for a new one based on what we used to call RRI (“rapid response intel”) from my intelligence days.

That, and running up large phone bills to sources in the Middle East, Europe, and even Asia.

When the dust settles next week, I hope to relate what has been going on in these sessions, or at least what can be circulated publicly