SLB - U.S. Production Outlook And MLP/Midstream Implications
Originally published on April 20, 2020
With benchmark West Texas Intermediate oil prices hovering around $22 per barrel1 for the June contract and regional prices even lower, netbacks for producers are admittedly dismal, making the current outlook for US oil production tenuous. Headlines surrounding potential state or federal government interventions further complicate the outlook. Today's note examines recent production-related updates from a variety of stakeholders, including oilfield service providers, exploration and production (E&P) companies, and the Energy Information Administration ((EIA)), as well as the implications of these updates for midstream.