The Petroleum Truth Report


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Strong Natural Gas Prices And Tight Supply In 2017

A year ago, most analysts were bearish about natural gas prices.    I wrote that natural gas prices might double and they did. Today, most analysts are again bearish about gas prices and again, I think that they are probably wrong at least for 2017. The mainstream narrative  is that new pipeline ...

Art Berman - The Petroleum Truth Report


Posted 8 days agoOpinion > Art BermanThe Petroleum Truth Reportnatural gas

Oil Prices Plunge To Where They Should Be

WTI oil prices plunged to almost $45 per barrel yesterday (Figure 1). That was a downward adjustment to where prices should be based supply, demand and inventory fundamentals. Figure 1. Oil Prices Are Testing a $45 Floor. Source: EIA, CBOE, Bloomberg and Labyrinth Consulting Services, Inc. Ana ...

Art Berman - The Petroleum Truth Report


Posted 16 days agoOpinion > Art BermanThe Petroleum Truth Reportoil price

OPEC Production Cuts and The Long Road To Market Balance

Global oil inventories are falling because of OPEC and non-OPEC production cuts but the road to market balance will be long. Production cuts have removed approximately 1.8 million barrels per day (mmb/d) of liquids from the world market since November 2016 (Figure 1). Figure 1. OPEC-NOPEC Have ...

Art Berman - The Petroleum Truth Report


Posted 1 month agoOpinion > The Petroleum Truth ReportArt BermanOPEC

Low Break-Even Prices Are For Everyone–Not Just Shale Companies

Shale companies have pushed break-even oil prices below $40 per barrel—but so have major oil companies. Analysts commonly portray cost reduction as something unique to the tight oil companies. Data from annual reports filed with the U.S. SEC (Securities and Exchange Commission) suggests otherwise. ...

Art Berman - The Petroleum Truth Report


Posted 1 month agoOpinion > Art BermanThe Petroleum Truth ReportShale +1

Shale Cost Reductions Are 10% Technology and 90% Industry Bust

I am tired of hearing about the unbelievable impact of technology on collapsing U.S. shale production costs. The truth is that these claims are  unbelievable. The savings are real but only about 10% is from advances in technology. About 90% is because the oil industry is in a depression and oil fi ...

Art Berman - The Petroleum Truth Report


Posted 2 months agoOpinion > Art BermanThe Petroleum Truth ReportShale +1

Don’t Hold Your Breath For $70 Oil

It is more likely that oil prices will fall below $50 per barrel than that they will continue to rise toward $70. Prices have increased beyond supply and demand fundamentals because of premature expectations about the effects of an OPEC production cut on oil inventories. Last week's 13.8 million b ...

Art Berman - The Petroleum Truth Report


Posted 3 months agoOpinion > Art BermanThe Petroleum Truth Reportoil price

The Days of Cheap Natural Gas Are Over

Natural gas prices averaged a little more than $2.50 per mmBtu (million British Thermal Units) in 2016. Those days are over. Prices will average at least $3.50 to $4.00 in 2017. Prices have more than doubled since March 2016 but gas is still under-valued. Supply is tight because demand and exports ...

Art Berman - The Petroleum Truth Report


Posted 4 months agoOpinion > Art BermanThe Petroleum Truth Reportnatural gas

Permian Giant Oil Field Would Lose $500 Billion At Today’s Prices

Did you hear about the largest U.S. oil and gas field that's in the Permian basin of west Texas? That's the one that's not a field because it hasn't been discovered yet. That's the one whose 20 billion barrels are an estimate by the U.S. Geological Survey. That's the one whose 20 billion barrels w ...

Art Berman - The Petroleum Truth Report


Posted 5 months agoOpinion > PermianArt BermanUnited States +2