Energy Prospectus

I happened to notice a headline that said that banks that are involved with the oil patch are reducing the size of their energy lending groups as activity is slowing down so much in the oil patch.
On the one hand, it seems to me that that implies a strengthening of prices, on the other hand, how do these companies grow, if drilling slows?

This is exactly why WTI in the low $50s is "unsustainable".

Over the last three years the U.S. has accounted for ~90% of global oil supply growth. If oil production rolls over in the U.S., I don't see where there is enough upside anywhere else in the world to meet the relentless demand growth (1.0 to 1.5 million barrels per day).

October is the lowest demand month. From the end of October to the end of June demand for oil will increase by approximately 2.0 million barrels per day. It happens each year.

All of our Sweet 16 have sufficient cash flow from operations to fund moderate growth.

"Rig counts have fallen sharply over the past year, down more than 20 percent from late 2018. The number of wells drilled has also declined and production growth has dramatically slowed. Halliburton said that its third-quarter revenues from North America plunged by 11 percent from the prior three-month period as shale E&Ps cutback on activity."

Read more: https://oilprice.com/Energy/Energy-Gene ... rsens.html

The #1 point that I tried to make in today's edition of The View From Houston newsletter is that EIA's forecast of relentless oil production growth in the U.S. is "wacko". The people at EIA must notice the sharp decline in the active rig count, but they have not adjusted their production forecast. Why?