YGRN - U.S. Shale Productivity Declines Even As DUCs Decrease

Welcome to the negative productivity edition of Oil Markets Daily!

First, let us state a few things readers must understand.

1. Rig counts may fall, but well completions may remain elevated, resulting in declining DUCs (drilled but uncompleted wells).
2. Production is based on how many wells completed, not how many wells drilled.
3. US shale oil production will climb because current well completion rates support this.
4. 2020 US shale growth will be cut in half even if well completions rise due to lower productivity and increasing base decline.

Now, it's important to get these four points stuck

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