US Oil Production Won’t Fall Anytime Soon: Deutsche Bank

When oil prices began to collapse around two years ago, most producers (especially in North America) adopted the mentality that the decline was only likely to be short-lived and continue to spend as if there was nothing to be concerned about in the market. Oil Patch Bankruptcies Hit $66.5 Billion Two years on and it’s pretty clear that lower prices are here to stay. There has been no meaningful reduction in production around the world, inventories remain at record levels and now formally high-cost producers are becoming extremely efficient at extracting oil from the ground. This is becoming a huge…