From Bad To Worse: Venezuelan Oil Production May COLLAPSE To ZERO For Export By Year End

Venezuela’s oil production could collapse to a level that there’s simply none left for export. Here’s why that’s a problem in so many ways…

Robert Rapier interviewed by Jason Burack on Wall St for Main St

Robert has over 25 years experience working different jobs in the oil and energy industries and he also writes paid investment newsletters about the industry over at Investing Daily.

1) Why aren’t Permian Oil Producers Profitable? https://oilprice.com/Energy/Crude-Oil…

2) Sleepwalking Into The Next Oil Crisis https://www.forbes.com/sites/rrapier/…

3) Permian Basin Oil Boom Causing Enormous Labor Shortage in Texas https://www.zerohedge.com/news/2018-0…

During this 40+ minute interview, Jason asks Robert if anything major has changed in the supply/demand fundamentals for the oil market? Robert talks about the OPEC production cuts last year and how production continues to collapse in Venezuela. Things are so bad in Venezuela from an oil production standpoint, that production is now projected to fall below 1 million barrels per day for the first time in decades. Production is so low in Venezuela now, that the Russians and Chinese may own all the Venezuelan oil production via off take agreements! Also, demand for oil globally continues to rise.

Jason then asks Robert if the oil price is high enough for a lot more deep water offshore oil production to come back online after many deep water projects have been cancelled the last 5 to 7 years?

Robert thinks that oil and gasoline prices are not high enough yet to cause major damage to the global economy and cause American consumers to start drastically cutting back on their gasoline usage.

Next, Jason asks Robert about his recent visit to the Permian Basin in Texas which is the sole source of US oil production growth. Robert thinks that oil production growth will continue in the short to medium term in the Permian Basin and for the US overall but that the US is nowhere near energy independence and that long term there is still major issues about where future oil supply will come from.

Jason asks Robert about discounted shale oil compared to other types of crude and how that affects US oil refiners margins.

To wrap up the interview, Jason asks Robert about LNG and the US starting to export a lot of natural gas, if he’s worried about the hundreds of billions of dollars in capex cuts that national oil companies and private sector oil companies have made in the last 5-7 years (a lion’s share of oil investment has only gone into US shale oil plays) and investment strategies for oil and natural gas investments now at this stage of the oil price cycle.

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Fonte: qui