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[quote=Anonymous][quote=Anonymous]The oil and gas companies are not happy. Cheap gas means the economy is not doing well. I work for an energy trade. API is not celebrating this.[/quote]

Oil companies know it demand is falling.

[quote] Alongside the production forecast, the EIA projects that West Texas Intermediate crude oil prices will average around $51 per barrel in 2026. Brent crude is expected to follow a similar trajectory, with prices falling as global supply outpaces demand growth.

Lower prices are largely tied to rising global inventories. As of late 2025, crude stockpiles are trending above the five-year average, with further increases anticipated. This overhang places structural pressure on benchmark prices, making it more difficult for producers to justify expansion.

In this environment, many US producers are shifting toward capital preservation rather than aggressive growth. With WTI in the low 50s, margins become tighter, especially for operations with higher breakeven costs such as deepwater or frontier shale regions.[/quote]
https://energy-oil-gas.com/news/eia-sees-2026-oil-production-decline-despite-regional-growth/

China is buying oil to put in reserve but their demand is now for petrochemical use. Without this buying oil prices would be a lot lower. US production is most likely at its peak. It is already starting to fall. For the past 5 years the smart capital has fled oil stocks.

The world is moving away from oil and gas.[/quote]

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