In terms of supply and demand balance for 2015, the Energy Information Administration’s (EIA) February 2016 Short Term Energy Outlook3 estimates that global liquids production grew by 2.2 million barrels per day (b/d) while demand only grew by an estimated 1.4 million b/d (see Figure 1). This drove excess liquids into storage, which has boosted commercial inventories to a new high of nearly 3 billion barrels. What is more interesting is by mid-2014, when oil prices had already begun to soften, the stream of new projects already under construction continued. This resulted in world production increasing by nearly 1.0 million b/d from Q4 2014 to Q4 2015 and highlights the impact long capital lead times can have on markets. Although prices were clearly softening, oil producers were unable, and in some cases unwilling, to curb production growth.