Midstream & Transport Monitor - September 25, 2015
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The big question on everyone’s mind is when are prices going to turn around; but the real question could be when does demand return? The current downturn isn’t so much akin to supply racing ahead of demand as it is to supply racing so far ahead of demand that it lapped it. In many ways the old conventions aren’t applicable: drilling efficiency has gotten to the point where the U.S. Energy Information Administration (EIA) and industry analysts are no longer relying on rig counts to forecast production output.