Morgan Stanley has announced that it has given up on the energy sector, and that their Overweight call at the beginning of the year was wrong. Additionally, they said that the falling rig count has proven meaningless as production in the US has not gone down. Seems like we can't catch a break here.
If our holdings keep falling, a 50% rebound sure won't mean much.
Morgan Stanley
Re: Morgan Stanley
For the record. U.S. oil production is falling and it is falling faster and faster. The rate of decline will accelerate in Q4.
U.S. oil production peaked at ~9.7 million barrels per day around March 31st. Today it is ~9.1 million barrels per day.
See EIA Drilling Productivity Report at http://www.eia.gov/petroleum/drilling/#tabs-summary-2
This report shows only the seven regions that account for all of the U.S. production growth in the last few years. Except for SCOOP/STACK in Oklahoma, drilling outside of these areas is near zero and production is on steady decline. U.S. oil production will fall by at least 100,000 barrels per day each month until WTI goes over $60/bbl and stays there for awhile.
U.S. oil production peaked at ~9.7 million barrels per day around March 31st. Today it is ~9.1 million barrels per day.
See EIA Drilling Productivity Report at http://www.eia.gov/petroleum/drilling/#tabs-summary-2
This report shows only the seven regions that account for all of the U.S. production growth in the last few years. Except for SCOOP/STACK in Oklahoma, drilling outside of these areas is near zero and production is on steady decline. U.S. oil production will fall by at least 100,000 barrels per day each month until WTI goes over $60/bbl and stays there for awhile.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group