Interview with Adam Rosenzweig on May 29
Posted: Mon Jun 01, 2020 11:14 am
https://www.dropbox.com/s/in10imuhkgft1 ... 0.mp4?dl=0
Above is a link to Bob Howard's telephone interview with Adam last Friday. Bob Howard has been an EPG member for over five years.
The big misconception is that U.S. upstream companies will ramp up drilling as soon as oil goes over $40/bbl. I don't see any chance that drilling budgets will be significantly expanded until WTI is back over $60/bbl. Then it is going to take several months for logistics to be worked out to gear up drilling. As Adam says during the interview, U.S. shale production went on decline in Q4 2019 when we had WTI in the $60s. If the global oil market is short oil by 5+million barrels per day early in 2021 we are going to see much higher oil prices next year.
If you are investing for high yield I recommend that take a look at Resource Royalty. They have an outstanding track record.
Above is a link to Bob Howard's telephone interview with Adam last Friday. Bob Howard has been an EPG member for over five years.
The big misconception is that U.S. upstream companies will ramp up drilling as soon as oil goes over $40/bbl. I don't see any chance that drilling budgets will be significantly expanded until WTI is back over $60/bbl. Then it is going to take several months for logistics to be worked out to gear up drilling. As Adam says during the interview, U.S. shale production went on decline in Q4 2019 when we had WTI in the $60s. If the global oil market is short oil by 5+million barrels per day early in 2021 we are going to see much higher oil prices next year.
If you are investing for high yield I recommend that take a look at Resource Royalty. They have an outstanding track record.