What is in store for the oil industry for 2021?
Infographic: Three Charts about the Petroleum Industry
Mar 25, 2021
by Jeffrey Winters
The price for oil depends on a balance of supply and demand. It also relies on the economics of oil fields: There are prices so low as to make pumping existing wells unprofitable, and prices so high as to encourage new drilling. The forecast prices for crude oil produced in the U.S. suggest that the petroleum industry will receive neither signal. Until demand for oil rises—which likely won’t happen until U.S. drivers start commuting to work and taking vacations by car—prices won’t support widespread new drilling. These three charts tell the tale.