And the fact the U.S. hasn't built a refinery since the 70's should have some effect shouldn't it?
Yep, it’s the above and more…politics, supply and demand, international crisis etc…etc……
……but mainly NEW TECHNOLOGY!
I have been fortunate to have participated through the entire digital age as well as the current energy independence of our nation.
At one time a vertical well bore could drill through a 10ft section of oil/gas bearing rock and would be a producing well - can you now imagine drilling the same formation, turning the drill bit and pipe horizontally and producing thousands of feet of pay? …..AND - observing/recording rock and fluid properties in real time - AMAZING TECHNOLOGY!
At the present time we have the capability of producing ~15 million barrels of oil/gas equivalent per day and even more energy if solar and wind is added to the mix.
Economics now come into play.
We were so successful in discovering new proven reserves of natural gas that prices dropped so low that drilling ceased, but in the process discovered oil that could be produced from shale. Same thing is happening today - price of oil/gas is so low drilling will be slowed due to cost exceeds price of product.
O&G prices won’t remain this low IMO because international economics come into play.
George
