Oil prices17 Aug 2020 07:43
If 2020 averages 435 rigs per day, that’s ~350K BOPD new production from drilling for the year. In that scenario we add that new oil to what’s left after legacy decline, ~4.6 mm BOPD, and we get ~5-mm BOPD.
Numbers don’t lie. This is admittedly simple math for an incredibly complex actual-almost incalculable calculation, but if I am even close to being right, and storage truly does get worked off around the world…get ready for $100 oil.
By David Messler for Oilprice.com