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<blockquote data-quote="NodakBuckeye" data-source="post: 46890" data-attributes="member: 714">Yup, but what percent of wells done this year where enhanced fracs?&nbsp; Wells being drilled now will be that way but I don't see enough drilled over the next 12 months to offset declines on existing wells.&nbsp; The Saudi's want that so they can have more volume but will prices stay in the range to reduce competion but still enough to keep their economy intact?&nbsp; Until we see the global economy tick up and demand for crude go up, we will probably be in the 40-60 range.&nbsp; The longer drilling stays at reduced rates, the greater the chance of a fast and overshooting price climb because of the lag in getting projects up and rolling again, not just here but just about anywhere but the Middle East.- - - Updated - - -I also find all the talk about how high the U.S. oil inventory is interesting and I agree that the supply is too high but we only have about a 23 day supply of oil on hand.&nbsp; 450 million bbls last week and average daily consumption of 19.5 million. The U.S. inventory would supply the world needs for less than 5 days.&nbsp; A couple hiccups in the gobal supply chain and things can turn in a hurry.</blockquote>

[QUOTE="NodakBuckeye, post: 46890, member: 714"] Yup, but what percent of wells done this year where enhanced fracs? Wells being drilled now will be that way but I don't see enough drilled over the next 12 months to offset declines on existing wells. The Saudi's want that so they can have more volume but will prices stay in the range to reduce competion but still enough to keep their economy intact? Until we see the global economy tick up and demand for crude go up, we will probably be in the 40-60 range. The longer drilling stays at reduced rates, the greater the chance of a fast and overshooting price climb because of the lag in getting projects up and rolling again, not just here but just about anywhere but the Middle East. [COLOR="silver"][SIZE=1]- - - Updated - - -[/SIZE][/COLOR] I also find all the talk about how high the U.S. oil inventory is interesting and I agree that the supply is too high but we only have about a 23 day supply of oil on hand. 450 million bbls last week and average daily consumption of 19.5 million. The U.S. inventory would supply the world needs for less than 5 days. A couple hiccups in the gobal supply chain and things can turn in a hurry. [/QUOTE]

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