The rate of oil production decline in the United States will accelerate in the 3rd quarter. It has already started. Per the EIA: In the last six weeks: > U.S. oil production has declined 222,000 barrels per day. > U.S. oil imports have increased by 512,000 barrels per day. Crude oil in U.S. storage facilities has declined 10 of the last 11 weeks, despite the sharp increase in imports. (Click to enlarge) “The decline curve never sleeps, and always wins.” – David Demshur, Core Labs CEO in their 2nd quarter conference call. “The inevitability of the decline curve guarantees that oil production will slow and the market will find a balance.” Coupled with declining production, we live in a world where demand for oil increases “relentlessly” by 1.0 to 1.5 million barrels per day year after year after year. From Core Lab’s Q2 press release: The Company continues to […]