Tuesday, December 14, 2021

Spare Capacity Talk: Numbers Starting To Come In -- December 14, 2021

What we've added to the "2022" list of things to follow: includes "spare capacity."

Link here.

2 comments:

  1. I don't believe that the spare capacity is smaller than the IEA states. JMHO

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    Replies
    1. Of course we will never know, but there are two schools of thought on this issue, even in Saudi Arabia: one OPEC+ spokesman says there will be a glut in 2022 and another Saudi spokesperson says there could be a 30% shortfall due to under-investment.

      There's also the problem of definition: the definition of spare capacity. My hunch, at $150, the Saudis would find all kind of oil; certainly the operators in ND, NM, and TX would find copious amounts of oil "overnight." At $30-WTI, not so much.

      So, like everything else, there will be much talk in the 1Q22 about "spare capacity" but that's all it will be: talk. And I'll certainly blog about with my biased opinions. LOL.

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