The oil and gas industry is suffering amid slow demand and falling prices.
And on Wednesday, DigitalGlobe announced that the Cushing, Oklahoma crude oil inventories decreased 3% from last week.
According to images from DigitalGlobe’s satellites, Businessweek reports, the crude inventories fell an estimated 873,000 barrels to 28.3 million barrels.
The Energy Department’s report said that the supplies totaled 30.1 million on September 30.
As the article reports, the Cushing location is the delivery point for crude oil and has a capacity of 48 million barrels.
And on Wednesday, the Energy Information Administration announced an overall drop of 1.4%, or 4.7 million barrels, from the total U.S. reserves, bringing supplies down to 336.3 million barrels of crude.
The total inventory, says the Associated Press, is 6.8% lower than last year, and gasoline supplies are 2.8% below last year’s levels as well.
The EIA weekly report announced that gasoline supplies dropped 1.1 million barrels, or 0.5% last week.
Crude oil supplies were expected to increase by 2.5 million barrels, while gasoline supplies were expected to go up 1.3 million barrels, the Associated Press reported.
The oil and gas industries are seeing a slump nearly as bad as during the recession.
According to the San Francisco Chronicle, British and North American oil exploration company reserves fell 23% in market value this year.
As Asian nations develop and look for easy access to the resources, buyers may spend up to $150 billion in takeovers by 2016.
The article reports that some companies targeted by these Asian buyers may include Tullow Oil (LON: TLW), Canadian Oil Sands (TSE: COS), and Kosmos Energy (NYSE: KOS).
The industry is facing a tough time, and failing investor confidence could change the industry’s shape.
That’s all for now,
Brianna
