- The simplest approach is to look at expected fossil fuel liquid production versus WTI to guestimate revenue growth and the market pricing response.
- Well-operated companies have nearly always added operating efficiencies which tend to surprise on the upside. Exxon Mobil and EOG Resources fit this description.
- Today, E&P companies are producing at ~20% less than 18 months ago, while consumption is normalizing.
- WTI is the likely key to stimulating higher production once it comfortably reaches and holds at a level that promotes additional supply. Only corporate management knows what that trigger price is.
For further details see:
Exxon, EOG And Oil