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http://www.cnbc.com/id/102731560

OPEC happy to keep market oversupplied.

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http://www.cnbc.com/id/102731560

OPEC happy to keep market oversupplied.

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U.S. Producers are free to cut production if they don't like the current oversupply.

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When Saudi Arabia launched a global oil-price war last year, most market players assumed America's high-cost, financially fragile shale producers would be first to retreat.

Some retreat. American companies have been quick to idle rigs and lay off workers, but U.S. onshore oil production has gone up since last fall, not down.

As oil ministers from member countries of the Organization of Petroleum Exporting Countries meet this week, they are grappling with the fact that the world's new swing producer is a very different animal from their traditional competitors.

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The industry is young enough that producers are still learning to cut costs, so the break-even price at which they can profitably produce keeps dropping, says Lars Eirik Nicolaisen of Rystad. By contrast, "the conventional onshore and offshore industry has seen complexity and break-even prices rise."

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According to Goldman Sachs, the average rig in Texas' Eagle Ford shale now yields 5,000 barrels a day in its first year, compared with less than 2,000 in 2011. The firm thinks most shale-oil reserves are profitable to extract at $60 a barrel (roughly the current world price), $20 less than last year.

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Anyone working on Bigfoot? What a cluster****. I cannot imagine the hours the project and installation team are putting in right now. Also screwing up Heidelberg install.

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Loop currents caused issues for the tendons and the support bouys lost flotation.

http://blog.skytruth.org/2015/06/bigfoot-suffers-damaged-tendons.html?m=1

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Got called by a recruiter from London. Said Saudi would like to pick up 200 more rigs.

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Got called by a recruiter from London. Said Saudi would like to pick up 200 more rigs.

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That would be impressive considering their all time high rig count as of March 2015 was ~130.

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Analysts at Simmons Energy Research in Houston said the demand numbers reflect a "heroic revision" to the first quarter. And while the EIA said a normalization of decreasing demand is likely by the end of the year, Simmons said in a report to investors that, "This strikes us as excessively cautious as we are seeing very little, if any, evidence of demand moderation."

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What's more, a projected 1.6 MMbpd in 4Q and 1.2 MMbpd in 1Q 2015 worth of "missing barrels" (the difference between actual OECD inventory change and the implied inventory change from supply and demand numbers), suggests the "recent demand is understated, supply is overstated, or a combination of both." In short, TPH said the market's oversupply as measured by OECD inventories at the beginning of 2015 could be about 700,000 barrels per day, significantly less than the 1.9 MMbpd implied by global supply and demand figures.

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