The Houston Chronicle and its FuelFix blog have once again turned to University of Houston Cullen College of Engineering faculty for expert opinions on the oil and gas industry, this time speaking with John Lee, petroleum engineering professor and Hugh Roy and Lillie Cranz Cullen Distinguished University Chair, about the federal government’s projection that U.S. oil boom activity will slow over the next two years.
The U.S. Energy Information Administration recently projected that the increase in oil production will slow by more than half a million barrels per day in 2015 for a multitude of reasons, including a decrease in demand with the influx of energy-efficient automobiles being introduced to the market.
Lee states that oil production is driven by the price of oil, meaning that how much oil companies draw from the ground will depend on how good of an investment it is to do so. He also cites political opposition to lifting the federal ban on selling crude overseas as a reason the oil boom may be coming to an end.
Read the full article here.