Tag: supply and demand

The Slide in Supply: Why Oil Supply is Lower than You Think

When the coronavirus pandemic destroyed global crude oil demand, supply was slow to respond until dramatic actions were taken. Now, with demand picking up at a rapid rate, supply is again being outpaced by its counterpart drawing down crude oil inventories around the world. While global forecasting agencies and oil companies alike predict slow demand growth to pre-pandemic levels, the supply picture will continue to lag behind well into the foreseeable future.

Back to the Future

Action must be taken in order to bring supply and demand back into balance by imposing production quotas. The Texas Railroad Commission is the only domestic governing body that has the immediate power to prorate production, and thus the only entity that has the power to save this drowning industry.