XLE - US oil production is going the wrong way

The Department of Energy released it's monthly oil production report Friday, highlighting lower US volumes in February. Weekly estimates of US production have shown flat volumes year-to-date; however, the much more reliable monthly figures have shown declining production for three months in a row. With February production down a full 450kb/d from November 2021 levels.  And production trends may not reverse as quickly as some hope. Hess (HES) recently reported earnings and guided the street to lower Bakken production in Q2, on weather-related outages. Pioneer (PXD) pre-announced earnings details Thursday and also guided production lower sequentially. SM Energy (SM), largely a natural gas producer, reported earnings this week, telling the street production would likely fall in Q2. And perhaps most surprisingly, Chevron (CVX) guided to falling Q2 production, though largely related to LNG maintenance outside of the US.  The weak performance in prior months varied between regions, and likely between operators.

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US oil production is going the wrong way