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EIA forecasts crude oil prices will decline through 2023

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Global oil consumption outpaced oil production for the six consecutive quarters ending with the fourth quarter of 2021 (4Q21), which has led to persistent withdrawals from global oil inventories and significant increases in crude oil prices.

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Oil Well Strippers Suffering From Low Oil Prices

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With OPEC breaking down and any kind of coordination among its members on price cuts looking increasingly unlikely, it now appears that oil prices could remain below $50 a barrel for a year or more. Stripper-operated wells account for all of the oil production in the state of Illinois, for instance.

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Oil price tumbles after OPEC releases 2015 forecast

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“Almost all the news flow points to a weaker market,” said one oil analyst , Carsten Fritsch of Commerzbank in Frankfurt. “We We have had very bearish API data with large stock builds across the board, and also a very bearish Short-Term Energy Outlook from the EIA, with a sharp reduction in demand growth forecasts for next year.”.

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Rhodium Group estimates US GHG emissions rose 1.3% in 2022

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Despite efforts to continue stimulating the US economy in the wake of the pandemic, high inflation put a damper on economic growth, which was exacerbated by a spike in oil prices as a result of Russia’s invasion of Ukraine. Consequently, the US economy grew 1.9% in 2022, down from a 5.7% GDP increase in 2021.

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EIA forecasts rising global oil production will limit price increases

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EIA forecasts production will increase more rapidly than consumption, ending the large global stock draws seen in the first two quarters of 2021 and limiting upward crude oil price movement. The price of WTI crude oil increased from $52 per barrel (bbl) in January 2021 to $65/bbl in May, driving increases in the US crude oil rig count.

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Sasol bails on $13-$15B US GTL project, divests from Canadian shale; no new greenfield GTL

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In January 2015 Sasol announced it was delaying a final investment decision on the proposed project near Lake Charles, Louisiana to conserve cash in response to lower oil prices. Sasol’s foundation businesses are cash positive at a US$40 per barrel oil price.

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IHS Markit: conventional oil & gas discoveries at lowest levels in 70 years; major rebound unlikely

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The low levels in discoveries come as a result of a pullback during the past 10 years in the wildcat drilling that targets conventional oil and gas plays—most drastically after oil prices collapsed in 2014. —Keith King, senior advisor at IHS Markit and a lead author of the IHS Markit E&P trends analysis.

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