XLE - Drilled but uncompleted oil and gas wells continue to decline in March

The Department of Energy released its monthly Drilling Productivity Report Monday, showing expectations for accelerating US oil production in May (NYSEARCA:USO) (XLE), but flagging continued declines in well inventory (HAL):  Monday's report shows the DOE is forecasting growth in US onshore production of 132kb/d in May, a marked increase from year-to-date results, where weekly DOE reports indicate production has not grown during 2022. During Q4 results, Pioneer (PXD) and Devon (DVN) indicated that Exxon (XOM) is driving production growth in 2022 by completing wells drilled in prior years; given year to date reductions in drilled-but-uncompleted wells, perhaps Exxon (XOM) isn't the only company pursuing the strategy. With well inventory falling, and production staying flat, either rig activity needs to accelerate rapidly, or expectations for 700kb/d - 1mb/d of US onshore production growth will need to come down.

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Drilled but uncompleted oil and gas wells continue to decline in March