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Oil Supermajors' Resources Might Be Drying Up

Good read, thanks for the info. Is the Bakken field in North Dakota/Montana considered an EOR? It's a pretty rich field from what I hear, but requires horizontal drilling in a narrow layer fairly deep down.

Oil Won't Stay Down for Long

I agree with txpenguin.

There was some speculation on the top side in the summer, but the supply/demand fundamentals still probably justified $100-$120/barrel at that time. But since it takes a long time to ramp up or down production, there's overshoot and undershoot when demand changes suddenly. Sub-$40/barrel is not sustainable, too many suppliers would get out of the market (like Canadian tar sands, which provides about 20% of U.S. imports and Venezuelan heavy crude, which also supplies the U.S.). We're seeing the end of availability of cheap oil, and only a real depression would cause oil prices to go below $30/barrel for more than a few weeks. I bet in six months oil is safely above $50 provided the economy doesn't worsen any further, and above $70 with a modest recovery.