Citigroup Says Peak Oil Is Dead - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Citigroup Says Peak Oil Is Dead
Started:February 17th, 2012 (09:44 AM) by kbit Views / Replies:540 / 0
Last Reply:February 17th, 2012 (09:44 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Citigroup Says Peak Oil Is Dead

Old February 17th, 2012, 09:44 AM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Citigroup Says Peak Oil Is Dead

Citigroup announced to the world Thursday that peak oil is dead. The controversial idea that world crude oil production is almost at its peak and will soon begin an irrevocable long-term decline has been laid to rest in the highly productive shale oil formations of North Dakota, with potentially big consequences for oil prices, the bank said.

However, despite this reading of last rites, the data suggest it would be premature to pronounce this patient dead.
Changes in oil markets in the past decade have given significant traction to the argument that world oil production is close to peaking.

Despite the huge incentive of a near-threefold increase in the price of benchmark Brent crude from 2000 to 2010, the world barely managed to eke out a 10% increase in crude oil production, according to BP data.
Many have argued that this proves the physical limit on global crude oil production is near, or may already have been passed.

“The belief that global oil production has peaked, or is on the cusp of doing so, has helped to fuel oil’s more than decade-long rally,” Citigroup said in a note to clients. “This is now all changing because of what is happening in North Dakota,” where new technology has led to a large and unexpected surge in oil production from shale rock.
After decades of decline, “U.S. oil production is now on the rise, entirely because of shale oil production,” said Citigroup.

Shale oil could add almost 3.5 million barrels a day to US oil production between 2010 and 2022 and has already slashed 1 million barrels a day from U.S. oil imports. One day it may allow the U.S. and Canada to be self-sufficient in oil, it said.

There are other parts of the world with similar promise, the bank said. Argentina has already discovered significant shale oil deposits. Australia may have shale reserves. The prospects for Europe may not be so good, given that one of the more prospective areas is in the Paris basin of France, where shale gas drilling has already been banned.
“The surge in U.S. production clearly indicates that human ingenuity is rising to the challenge issued by long-time oil bulls,” and peak oilers, said Citigroup.

Despite this optimism, it’s a fair bet that not everyone will be convinced. Indeed, there is good reason to be skeptical that the world’s oil production can be forever buoyed by new technology. This is the fact that, year in year out, oil production from existing areas like the North Sea or Alaska declines steadily, meaning the industry must run just to stand still.

Even the optimists at Citigroup acknowledge that existing oil production should naturally decline by between 4% and 5% a year. Between 2010 and 2011, this would have amounted to a hole that needed to be filled of between 3.3 million and 4 million barrels a day.

Only time will tell whether shale really can help oil production overcome this natural gravity and ascend to fresh heights.

Citigroup Says Peak Oil Is Dead - The Source - WSJ

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Citigroup Says Peak Oil Is Dead

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Peak Oil and the Financial Crisis: Where do Oil Prices Fit In? kbit News and Current Events 1 February 26th, 2012 11:46 PM
Peak Oil's Affect on Gasoline Prices in 2012 kbit News and Current Events 0 January 12th, 2012 08:38 PM
Peak Heist Quick Summary News and Current Events 0 December 23rd, 2011 02:00 AM
Article about "peak oil" Looking in the Rear View Mirror kbit Commodities Futures Trading 2 June 15th, 2011 03:59 PM
Peak Oil Review LukeGeniol News and Current Events 2 March 17th, 2011 02:58 AM

All times are GMT -4. The time now is 11:14 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-24 in 0.06 seconds with 19 queries on phoenix via your IP