Sunday, June 02, 2019

Energy 125, Falling world oil prices

Last year, June 02, 2018, I posted this in fb:

Rising US oil output, declining world oil prices despite OPEC-Russia production cut, Venezuela socialist flop and oil production cut. Do we hear people saying "thank you US/Trump for your pro-fossil fuels policy"? :-)

So WTI oil prices, end-May 2018 of $65.8 per barrel to end-May 2019 of only $56.6 (and down to $53.5 in June 01). US oil production, end-May 2018 of 10.8 million barrels per day (mbpd) to end-May 2019 of 12.3 mbpd. 

OPEC-Russia collusion to have high world oil prices via joint oil output cut vs Trump/US plan to have lower world oil prices via higher US oil output. And Trump/US wins.

Projections of US oil production, average for: 2019, 12.45 mbpd;  2020, 13.38 mbpd. Story here,
EIA raises forecast for 2019, 2020 U.S. crude output growth
May 8, 2019

Russia and Putin are unhappy/angry with low oil-gas prices (oil-gas-coal exports constitute about 48% of Russia total exports) while Trump is happy. That is why the 'Trump-is-Putin-puppet' aka 'Trump-Russia collusion' is a lousy-idiotic proposition at the onset.

We should have cheap energy. More energy production and competition is good. Energy collusion and price cut is bad. And by extension, high energy taxes, carbon taxes, other watermelon taxes and subsidies are wrong.

See also:

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