Frost & Sullivan’s Carl Larry examines the impact the shale oil revolution is having on storage in the us and how it is only good news for operators
Things change quickly in this industry. In Chicago they say ‘If you don’t like the weather, give it a few hours’ and this saying applies to the oil markets and the growing fascination with shale oil.
Things changed relatively quickly as crude oil production doubled from 5mm b/d in 2011 to 9.5mm b/d in 2015.
Demand for crude that runs through US refineries jumped from 15mm b/d in 2013 to tip the scales at a peak of 17mm b/d this year. If for anything, the truth is that crude oil production in the US is at record highs and consumption of that crude is also at record highs.
In the eight months that have passed in 2015, the year started with major concerns about the viability of shale crude production. As oil prices were tumbling under $60, talk in the market was that break even for shale producers was at best $50.