Saturday, November 16, 2019

Offshore oil will peak soon, shale is ending, Brazil auction fails

(Bloomberg) -- Offshore oil production is expected to hit a peak in 2020 before joining the shale industry in a slowdown that could dramatically rewrite market supply predictions.
It was billed as the largest oil auction in history, one expected to produce a windfall. But analysts say a high signing bonus scared away bidders.
A few high-profile shale executives say the glory days of shale drilling are over.

How should we interpret this. There is a temporary glut of oil, but the long term is shortage. But there is no proper price because any price is too low for producers and too high for consumers. This is why there is such an attack on public transportation. Oil companies are producing on borrowed money and are desperate for customers. Meanwhile wars for oil are raging.