The original article did (I thought) a good job about explaining the political reasons for pushing for a strategy to contain Putin by pressuring his Crude Oil income.

KSA went along with it..

However between the growth in world consumption (assuming world growth??) with the high decline rates from US Shale production.. it will not take long for markets to correct.

The other article does balance it out a little talking about the backlog of completed wells..

Here is the updated North Dakota production https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf

Wow the numbers really bounce around.. as have the US numbers..  So Far North Dakota has still peaked on production back in December.. despite adding another 1,000 wells through June...  The US Numbers are down pretty substantially since this spring..

As Tara notes ND is down to 40% of the rigs used to drill vs a year ago.. they may be more efficient but as the majority of DRILLED wells continue to decline through the depletion curve.. that will not be enough.. some estimates say that we need to DOUBLE the current drilling rigs in order to MAINTAIN production...??

Either way.. it's irrelevant vs what OPEC and the Middle East will do.. IF KSA wants to keep pumping.. pressure will remain.. If/when they decide to make more $$$ prices will rise.. They can not do it alone.. but the rest of the world's high cost producers are caught in the same trap as North Dakota Shale.. it's NOT PROFITABLE to MAINTAIN production at THESE LEVELS..

There is a WIDE viewpoint of prices going forward.. some are still looking for a washout.. (some even on this board..) others Including KSA expect prices to return to the $65 to $70 level as early as Q2 of 2016..

I do NOT buy into the notion that Crude was pushed up by Wall Street.. Wall Street certainly climbed aboard.. but I don't believe we reached $100+ on Fund buying.. not sure where the numbers are today.. long or short Sat?  It appears that someone has been covering.. and that it may continue...??

It sure feels to me that we are going to drift higher.. going forward.. although as we enter the off peak driving.. and the slap in the numbers.. might still crank out a higher production number to give the bears another round..

Flip side.. I believe we are already seeing users lay in hedges on 2016 needs.. July Crude around $50.. by the time we get there.. probably around $65.

PS Tara.. I never called for $100 crude by now.. I said we'd see $60 before we saw $30 last spring.. which we did.. I said we could/can get a spike at any time.. which I still stand by.. Frankly I acted on what I posted.. locked in my summer needs.. and am looking at doing so now for next year.

I believe I've been more correct than you thus far..  show me where I posted otherwise..