U.S. Oil production trumps OPEC cuts


Who says I don’t cover good news?

Let them drink their oil and choke on it. We must starve the jihad beast.

Of course, the left-wing haters despise when America succeeds. The moochers and the looters (Democrat) party obstructs all that is good and productive, i.e. the Dakota pipeline, Keystone, fracking, shale, etc. so this will make them scream like banshees. Schumer will weep again.

U.S. Oil Production overshadows OPEC cuts

By Matthew Rocco, FOX Business, February 13, 2017 (thanks to Robert N.):

A pick-up in American oil activity kept oil prices in check Monday, despite reports that OPEC producers are mostly sticking to their pledged cuts.

The Organization of the Petroleum Exporting Countries, which formed a pact to slow down its production of crude beginning in January, released its own data to show 93% compliance with production cuts. The Paris-based International Energy Agency also found high compliance among OPEC nations. According to the IEA’s report, OPEC’s January production achieved 90% of the planned cuts of 1.8 million barrels per day.

The numbers were better than analysts anticipated, and U.S. oil futures responded in kind Friday with a strong rally. However, another bump in the U.S. rig count reminded investors that OPEC’s cuts, while designed to reduce global supplies and lift prices, are encouraging American producers to get back to drilling.

“Weekly data suggest that U.S. production is rebounding more strongly than anticipated,” J.P. Morgan (JPM) wrote in a research note to clients Friday.

Analysts at the bank also believe domestic production is running at 9.2 million barrels per day, faster than the U.S. Energy Information Administration’s weekly figure of 8.9 million.

The cuts by OPEC, led by Saudi Arabia, are a driving force behind the U.S. oil industry’s reawakening. The number of rigs operating in the U.S. totaled 741 last week, according to Baker Hughes (BHI). That’s an increase of 12 versus the prior week and 200 year-over-year. Canada’s rig count is also on the rise, climbing by 130 rigs since the same week in 2016.

J.P. Morgan said U.S. oil inventories, as well as Canadian output, will keep downward pressure on prices for the time being. Construction of the Keystone XL pipeline, which has been fast-tracked for approval under the Trump administration, would further improve the economics of oil drilling in Canada.

The EIA believes U.S. oil prices will average $54 per barrel in 2017, according to the agency’s latest short-term energy outlook. Recent trading suggests that the market expects West Texas Intermediate (WTI) prices to trade between $45 and $65 in April.

WTI crude slipped 1.9% to $52.86 a barrel Monday. Brent crude, the international benchmark, was down 2.1% at $55.52 a barrel.

  • Interestingly, that will also choke the Russian regime which depends on the oil sales as a main source of money.

  • Rolland

    Where’s the diversity?

    • Mark Steiner

      In the oil patch. I’ve been there. I’ve seen it. Roughnecks – the most diverse bunch of hard workers anywhere.

      • Poptoy1949

        Amen !

      • Ron Cole

        Decade past I flew for a pipeline and oil holding company.
        You nailed it.
        As to the danger of railroads just look up the damage a high-speed train does when derailed.

        • Mark Steiner

          Am familiar where the 2014 Casselton derailment occurred. Heavy freight traffic pretty much all the time, Railroads are no longer run by railroaders but by bean counters and Wall Street cozy-ups. If the the right-of-way or rolling stock needs maintenance – oh well, Wall Street needs a dividend, so “that rough stretch between Casselton and Tower City” had to wait … anyway the pipeline will get the oil flowing with greater efficiency.

      • Drew the Infidel

        Agreed. All those crybabies demanding a minimum wage of $15 an hour could walk right into such a setup at the nearest drilling rig, provided they are prepared to work for it. If all they care about is paydays and holidays they won’t last long.

        • Mark Steiner

          One day – if that.

  • AlgorithmicAnalyst

    Interesting, likely means Venezuela is in even worse economic trouble.

  • Mahou Shoujo

    Any time it is necessary, Canada, Venezuela, Mexico can gear up to any market. Despite fools of hollywood democrat phoney environmentalists, the oil industry can mobilize and be in production with major expansions.

    • Suresh

      These Hollywood celebs, Dems are on environment bandwagon because Lobbyists funded by saudis/OIC pay them big money .

      Why would they fund ? Its in saudi/OIC interest to keep the lid on American oil production so they can keep making money of it !

      When you have Iran buying politicians who then support a patently foolish and dangerous Nuke deal http://tinyurl.com/njzxzed

      …..all this should not shock those who know about these scumbags.

  • Mark Steiner

    This writer is also watching domestic oil prices. Much of the new activity in the United States is in the Permian Basin of Texas. North Dakota’s Williston Basin, one-time second greatest producer in America, will not see a significant upsurge in drilling/fracking until the domestic prices passes $65/barrel. But – and if – the pipelines approved by Mr. Trump get built and put online, it should be much cheaper to ship Bakken/Three Forks crude oil from the Williston Basin. Presently, costly railroad transportation is relieving most the glut still in storage there.

    • Poptoy1949

      I agree with your statement and second it.

    • Drew the Infidel

      Agreed. I live in Midland, TX, right in the middle of the Permian Basin. The reason for the Obhammud administration to do its foot dragging act on the pipelines was that the railroads being used were owned by his good bud Warren Buffett. Typical crony capitalism for which he was well known.

      • Mark Steiner

        You bet. In ND the main carriers are BNSF and Canadian Pacific. Derailments, fires and explosions always a threat, like the one at Casselton ND (22 miles W of Fargo) in January 2014 during a cold wave.

        Williston Basin activity is lagging behind Permian because lifting costs are higher. The pipelines should lower the cost considerably.

    • Rob Porter

      Interesting stuff – and for me educational. Good news!
      Hey Mark, how I enjoyed Pamela’s pleasure at ‘sticking it’ to the treasonous liberal Democrat traitors. Why don’t those imbeciles simply emigrate? They are such loathsome and loathing creatures, they should go live in a Muslim country where loathing and hatred is the name of the game. Her opening above was priceless.

      • Mark Steiner

        She is a blessing. Will keep her in prayer.

      • p

        they would be killed off as disgusting vermin if they went to a muslim country

  • michaelofsydney

    Can’t say fracking is such a good environmental option.

    • Poptoy1949

      It is not a bad one. Fracking has a bad name because people have given it a bad name. They even made a movie to say it was bad. Fracking is a GOD send and when done correctly hurts or pollutes no one. I worked in the Oil Fields for too long and have seen 100’s of Fracking jobs and not one hint of trouble. Trust me when I say Fracking is a good thing.

      • michaelofsydney

        It damages farming land by polluting aquifers. I don’t ‘trust’ you. Sorry.

        • Poptoy1949

          I could care less if you don’t Trust me. Keep your head in the Sand.

        • Drew the Infidel

          On “fracking”, which is technically called a fracture treatment, you are so full of shit*t that if your eyes aren’t brown it means you are a quart low.

          • Joe1938

            Re michaelofsydney, we have to remember from an expert; Liberals are clinically mad, concludes top psychiatrist Dr. Lyle Rossiter. Doctor Rossiter makes case that leftist ideology is a mental disorder.

          • michaelofsydney

            And I imagine next weeks lesson will be to let me know that nuclear power is a safe method of producing power.

          • Drew the Infidel

            What is your solution or preference, a campfire in a cave? Join the 21st Century, you might like it.

          • michaelofsydney

            I have solar electricity in my off the grid getaway. I don’t like fracking and I don’t like nuclear power. I wish the current wave of rioters would turn their attention to Fukushima (much worse that Chernobyl) which is poisoning the water(s) off the Sanctuary State in California. And I don’t much like the 21st century to be honest. Am OK with petroleum however consider that as a source of energy, it makes sense to continue developing solar. Had the 7 sister profit merchants not seized Tesla’s work, maybe….just maybe. Oh and we do love a campfire. I even have a solar oven and a heritage seed bank and plentiful water in an underground aquifer and it is one reason why they can just frack off :) 2017 is the year everything will change. I wish you good luck and may God Bless you and yours.

  • joe1429

    If we were allowed to tap into it seriously, we can produce all our own oil!

    • Joe1938

      There is enough oil between Ventura, CA and Sacramento, CA to make North Dakota look like a drop in a bucket.

      • joe1429


  • Drew the Infidel

    The ragheads are living in the past. The OPEC oil embargo of the 70s, enacted because the US signed an agreement in support of Israel, had its devastating effects. Who can forget gas shortages, long lines at filling stations, gas station attendants having to wear sidearms, etc.? Once the US finally becomes energy independent the ragheads will be back in the goat business overnight.

  • felix1999

    OIL money is what finances Muslim terrorism.
    That is WHY Obama banned drilling.

  • Thanks for using that photograph of the OPEC meeting. It was quite humorous to see all those parasites wearing their tricycle inner tube dish towel holders in one spot.

    • Drew the Infidel

      Agreed. I saw the caption “Heads of state” and had to laugh at how much their head gear resembles foreskin.

  • Joe1938

    Keystone needs to be completed ASAP so that the refineries in Texas will be swamped with North American crude. This will cause the Saudi to have to send their crude to refineries outside TX where the refineries are already taken and full of other crude. Karma for the ragheads who brought down the WTC.

  • Badger

    …and still Iran cannot refine its own crude!

  • p

    We need to pick up 100% of opec output to defeat jihad

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