Over-Production, The Disease Affecting The Oil Industry

Global oversupply is responsible for a 50% drop in crude in the past year.

Production investments are being cut globally. Some of the hardest-hit countries are in Asia and the Pacific, where state-owned oil companies dominate the region and GDP.

Summary

  • Asian oil companies join the world in production cuts.
  • Crude prices make production investments unprofitable for oil companies globally; cuts made in droves.
  • PetroChina set to match Exxon Mobil's market capitalization again.
  • Malaysia hit hard by crude as the second-largest oil producer and consumer in Southeast Asia.
  • U.S. shale oil production expected to slow in 2015.


Fears of further lows have economies on watch for massive economic struggles if oil can't find its bottom here, soon.

>> Full article over at SeekingAlpha.

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