June 13, 2019
In its Wednesday Week in Petroleum report the Energy Information Administration warned that signs are pointing to a 2020 spike in oil supplies with a simultaneous drop in prices — endangering Texas drilling.
The EIA projected in a major change that OPEC will increase production while US production continues an upward climb.
“The forecast supply rise will lead to record inventories — a doubling or more — as world liquid fuels production growth outpaces growth in consumption,” and prices will fall as a result, the Washington Examiner pointed out Thursday.
“The last time the U.S. experienced a major oil price crash was in the run-up to the 2016 presidential election. At the time, low prices had caused thousands of oil rigs to sit dormant, laying off hundreds of thousands of workers and driving up unemployment in the industry.
“President Trump, with his promises of tearing down regulations on fossil fuels, won the election over his rival Hillary Clinton, who had promised to put fossil fuel companies out of business,” the newspaper noted.