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Oil Supply/Demand Fundamentals
   

Spring of 2017:  It is apparent that by late fall of 2016 that the supply/demand picture had moved closer to balance in comparison to the start of 2016.  However, between additions from a variety of sources and slowing demand growth,  the market was still struggling balance supply vs demand.  However, the agreement by OPEC and non-OPEC countries to reduce supply appears to have the potential to balance the oil market, but to potentially move it into deficit, thereby, reducing high global inventories.

   
Changes in the Global Oil Supply/Demand Fundamentals
Changes in the Global Oil Supply/Demand Fundamentals
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2017 US Oil Inventory Levels Compared With 5 Year History
2017 US Oil Inventory Levels Compared With 5 Year History
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As North America is now the marginal source of supply for the global oil industry, we have supplied some charts to provide some historical perspective for US oil production, gas demand, and total product demand.  We believe the oil supply curve (see below), which plots our estimates for the NYMEX oil price needed to develop specific volumes of oil (organized by either play or technology type) is a particularly useful tool.

Please contact us at insight@energy-cg.com for a version of the slide with prices, play names, and volumes.

US Daily Oil Production as Reported Weekly by the EIA
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North American Oil Supply Curve
North American Oil Supply Curve
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Daily US Gasoline Volumes Over Two Different Time Horizons
Daily US Gasoline Volumes Over Two Different Time Horizons
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Daily US Total Product Volumes over Two Different Time Horizons
Daily US Total Product Volumes over Two Different Time Horizons
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