I have been following some interesting trends regarding world oil production. It appears that lots of big players, hopefuls, are either dropping out of the game or are close to it. Here are some places where Big Oil thought that perhaps a diamond in the rough could be found.
- Canadian Oil Sands
- Kazakhstan Caspian Sea
- Ghana, Africa
- Guyana, South America
- Brazil, Pre-Salt Fields
- Not to mention, Qatar leaves OPEC
The problems in these areas are many: competition from frac oil, lack of return on investment, found heavy oil instead of light, lack of foreign investment, etc.
From where I am standing, that only leaves the USA, Russia, and Saudi Arabia as the big mega-players. Yet, West Texas Intermediate cannot break past $60/barrel. What is going on?