Energy Prospectus

Historic US shale oil output continues, but forecast growth slowing by S&P Global / Platts

Nice to finally see some "experts" begin to notice what I have been telling you for over three months.

HIGHLIGHTS
> Projected U.S. oil production growth fell below 1% in six of last eight months
> Slowdown caused by cost-cutting, low prices, lack of pipelines
> Permian to account for 90% of shale growth as other basins dip

"Washington — US shale oil output continues to shatter records, but the forecast for monthly production growth has shrunk by more than half over the past year, with five straight months of less than 1%, an analysis of US Energy Information Administration data shows."

Read more: https://www.spglobal.com/platts/en/mark ... th-slowing

MY TAKE:
> This is not a temporary slow down.
> The active rig count, well completions and production will decline in Q4 unless we see higher oil prices soon.
> There may be a slight increase late in the year as upstream companies want to get more new well into the year-end reserve report.
> Upstream companies will not rush to increase drilling activity unless oil prices go a lot higher from where they are today.
> Increased pipeline access in West Texas might bring a bit more production to market.

So how is slowdown in completions as mentioned above consistent with records set in fracking (completions)?


Nationwide, U.S. fracking operations saw a strong recovery in June with 49 wells fracked per day, an increase of five daily wells since May. https://www.rigzone.com/news/permian_fr ... 09-article

Doing a little more research on this. https://www.rigzone.com/news/permian_fr ... 09-article This rigzone article is based on Rystad's analysis of fracking activity. They are calling for MORE completions in May and June, not less. Can anyone tell me why they are off? Rystad is using FracFocus. I had to look it up. It is a chemical reporting registry. Seems like all of the shale producing states require wells to report to this website. So, it may be more up to date and current than relying on completion data from sources like the TRCC.