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Expert Insight

OPEC’s Uncertain Production Estimates

Author(s): OurEnergyPolicy.org

Date: April 20, 2012 at 8:09 AM

This month OPEC, the intergovernmental affiliation of twelve oil-producing countries, released two different estimates for its members’ monthly crude production. The first estimated 31.2m b/d in February, and relied on secondary sources, as OPEC estimates have traditionally done since 1986. The significantly higher second estimate of 32.1m b/d relied on direct internal reporting from OPEC member countries. The estimates’ disparity casts doubt on the accuracy of OPEC’s reporting. OPEC accounts for 44% of world oil supply. In an article for Platts, Richard Swann explains “OPEC crude production estimates are undoubtedly among the world’s most important pieces of oil market data.… [more]

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Expert Insight

Natural Gas Estimates Greatly Reduced

Author(s): OurEnergyPolicy.org

Date: February 1, 2012 at 8:03 AM

The Energy Information Administration (EIA) has lowered its estimates of U.S. natural gas resources. The EIA’s 2012 estimate for total U.S. natural gas is 482 trillion cubic feet, down more than 40% from its 2011 estimate of 827 tcf. [New York Times] Because of increased gas production throughout the U.S., EIA had more data available in making its 2012 estimates. For example, with additional data from increased production throughout the Marcellus shale – a geological formation stretching beneath West Virginia, Pennsylvania, Ohio and New York – EIA adjusted its estimates for the Marcellus to 141 tcf, down nearly 66% from… [more]

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