Why U.S. Oil Production will keep falling - Aug 16

[dan_s]

Why Fracking Activity Hasn’t Increased As Oil Prices Recovered
By David Messler - Aug 16, 2020, 12:00 PM CDT

Near the end he says some nice things about Parsley Energy (PE), one of our Sweet 16 companies.

https://oilprice.com/Energy/Energy-Gene ... vered.html

The FEAR that upstream companies are going to ramp up drilling just because WTI rebounded to the low $40s is nothing to worry about. I believe WTI must get back over $60/bbl before any upstream company's board will approve an increasing in capex. BTW this increases by belief that natural gas and NGL prices are going to move much higher over the next six months.

[dan_s]

The effect of COVID-19 pandemic and the associated economic woes, along with intensified trade tensions and global political risks, have together posed unprecedented challenges for the American oil and natural gas industry. In April 2020, the U.S. oil prices plunged below zero, leaving no takers and compelling even seasoned players to scramble for oil storage. Decreasing demand and political agendas to stop fracking and export of oil and natural gas have added their share to a negative outlook that finds support from protests calling for a ban on fracking. It would seem to some that shale oil and fracking are probably on their way out. Not so fast. A ban on fracking may sound noble in some circles, but far from being a practical and permanent solution, it may pose significant impediments to energy generation in the United States and the national economy.

Read more: https://www.energyindepth.org/guest-pos ... e-economy/

Conclusion: Any politician that has a few brain cells knows that a ban on fracing would crush the middle class. Maybe that is their real goal.