Summary
- There is some evidence of lower consumption trends for crude oil as LNG becomes a more popular fuel.
- Next week’s EIA data set will examine the trends concerning this observation.
- The rig count belies the rising Fudge Factor in EIA data which suggests US Crude production is actually closer to 14mil BBL/Day than 12.3Mil BBL/Day shown.
There is some evidence of lower consumption trends for crude oil as LNG becomes a more popular fuel. Next week’s EIA data set will examine the trends concerning this observation.
The rig count belies the rising Fudge Factor in EIA data which suggests US Crude production is actually closer to 14mil BBL/Day than 12.3Mil BBL/Day shown. As a result, fewer rigs are necessary for oil production and this may be what is being reflected in this data.
The long-term history of the declines in the Baker Hughes Rig Count reflects drilling efficiencies per well and well output over time.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
For further details see:
Rig Count Becoming Less Meaningful