- Oil output near 15 year high (WSJ 12/5/12). U.S. daily production reach 6.5 million barrels in 2012 an increase of 900,000 barrels over September 2011 a 16% increase. The Saudis produce around 9.8 million barrels at this rate it will not be long before the U.S becomes the #1 oil producer in the world.
- U.S. Gas exports could be coming (WSJ 12/6/12). Recent government study encourages the U.S. to export natural gas. “The administration has said that the study would be central to its decision on approving exports.” There are currently 22 requests into the Department of Commerce to export natural gas. If the government approves exporting natural gas, look for natural gas drilling (dry and wet) to increase substantially. All majors are in the Marcellus and Utica to export natural gas. The prices in Europe and the Far East are much higher than the U.S. For instance, last week natural gas in US was $3.70 per million BTU’s in Japan it was $17. As I have told many people, the majors are not in this to send natural gas to Boston.
Joseph F. Barone