US Shale Boom Producing Record Amounts of Oil, Demand Weakening

The US shale boom in the midst of record oil production but the news comes as demand weakens, pushing prices down.

According to Bloomberg:

Domestic fields will add an unprecedented 1.1 million barrels a day of output this year and another 963,000 in 2015, raising production to the most since 1970, according to the U.S. Energy Information Administration. The Energy Department’s statistical arm forecasts consumption will shrink 0.2 percent to 18.9 million barrels a day this year, the lowest since 2012.

Ralph Eads, vice-chairman and global heady of energy investment banking at Jefferies LLC, said:

If prices go to $80 or lower, which I think is possible, then we are going to see a reduction in drilling activity.

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