XOM - Oil well inventory levels continue to fall

A report released by the Department of Energy Monday showed "drilled but uncompleted" wells fell by 156 from January to February. The measure is an indication of well inventory for the industry; once inventory becomes sufficiently low, producers will need to accelerate drilling to keep up with completions, creating a tailwind for service companies like Haliburton (NYSE:HAL) and Schlumberger (NYSE:SLB).  Exxon (NYSE:XOM) plans to grow Permian production by 25% in 2022, though executives from Pioneer (NYSE:PXD) and Devon (NYSE:DVN) indicated that Exxon's (XOM) near-term growth is driven by well inventory reduction; in 2023+, Exxon (XOM) plans to grow Permian production by less than 10% per year. The report also showed oil production (NYSEARCA:USO) from the seven largest shale basins in the US rose by 117kb/d in February, led by the Permian, up 70kb/d month on month. As the market continues to focus on the shale discipline narrative, future monthly reports may

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Oil well inventory levels continue to fall