COM - Midday In The Permian: WTI Could Rally Soon
2024-06-12 08:00:00 ET
Summary
- US shale oil production is on the verge of decline, with a decrease in rig and frac spread count despite increased output.
- M&A activity has led to consolidation in the industry, resulting in fewer rigs and frac spreads.
- US E&Ps are prioritizing shareholder returns and debt reduction, leading to a reduction in capital spending and slower depletion of Tier 1 acreage.
- We think the shale sector is investible at current levels as are funds the mirror crude and E&P company performance.
Introduction
There are about ten large "buckets" of oil that empty themselves daily into global storage tanks and then make their way to various ports of call. Counting crude and other petroleum liquids, the U.S. has the biggest bucket , pumping nearly 22 mm BOPD, followed by Saudi Arabia and Russia. After the top three, the daily buckets get smaller rapidly....
Midday In The Permian: WTI Could Rally Soon