the oil production keeps on rising.. the initial stacked rigs were mainly conventional.. the shales have been going on at a great pace, and the quality on the fraccing operation has increased month on month and year on year, everyone is trying to increase well production and improve engineering.. and succeeding at that.. so wells are flowing bigger and harder as producers have to flow as much oil as possible to recover the massive losses they are experiencing.
there is a a huge backlog of wells that each producer in the shales has.. operators like SEA had anywhere form 10 to 20 wells ready for fraccing at any given moment and you have to think of the staggering numbers the other major operators have out there,,, it will take a good while before they catch up with fraccing to the current drilling programs.. and it will take a long time more before we finally see the month on month increase in production of oil in the US slow down..
predicting the bottom is like catching falling knives... there is a massive oversupply of oil and the US continues to produce more oil month on month, so the current increase in oil prices is merely price manipulation, short squeezes and blind speculation... how can anyone say oil should go up when your producing more oil each month compared to the last...??? i would be real cautious in specualtiong in oil futures right now.. let alone on the shale producres on the exchanges.. the PE valuations on the US oil companies are at levels close to never been seen before ... its insane over there... imho a lot more pain to come for the oil sector...
Despite the dramatic plunge in rig counts, this week saw yet another surge in production to record highs and with storage levels getting close to full, it would seem - despite the bounce/squeeze in prices to $53 as the data hit - that supply remains well ahead of any demand. Total rig count dropped 98 to 1,358 - for the largest weekly drop of the 10 week run as cutting is accelerating rapidly - now down 30%. This is the biggest weekly rig count drop since 1993. West Virginia remains the relative hardest hit with rig count depletions but Permian Basin collapse 49 rigs to 369 this week. US Oil Rig Count Down 84 to 1,056
Canada Rig Count +1
Total Rig count... biggest percentage weekly drop since 1993
with production remaining at record highs...
SEA Price at posting:
57.5¢ Sentiment: None Disclosure: Not Held
