Oil & Gas Industry Struggles to Maintain Momentum in 2012 as Low Demand Continues to Pressure Prices

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The American Petroleum Institute last month reported U.S. oil demand in October fell to 18.4 million barrels a day, which was the lowest October demand seen in 17 years. During the first 10 months of the year was 2.1 percent below the comparable period in 2011. Crude production in October averaged 6.652 million barrels a day, the highest in October since 1994.

“For many months, we’ve seen variations on the same theme: weak demand versus a year ago and some of the weaker demand numbers over the past decade,” said John Felmy, API chief economist. “The simple fact is that unemployment remains high and economic growth has been extremely modest. Petroleum demand is reflecting that.”

Denbury Resources is the largest combined oil and natural gas operator in both Mississippi and Montana, and owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River. The company increased average total production to 72,776 barrels of oil equivalent per day in the third quarter, 9 percent higher than 2011’s third quarter level and 1 percent higher than the second quarter 2012 level.

Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America’s Piceance Basin (now approximately 131,000 net acres) and Peace River Arch regions (approximately 11,000 net acres). The company recently reported the execution of a sale and farmout agreement to a U.S. multi-billion dollar E&P Company listed on the NYSE.