Summary:
- With WTI currently trading around $60/bbl, many shale oil producers can now generate significant free-cash-flow.
- In April, Permian oil production actually ticked up as more rigs are being put to work.
- Bottom line is that U.S. shale oil production is now expected to grow by 500,000 bpd by year-end.
- However, the re-opening of the economy due to vaccines, combined with stimulus checks in consumers' pockets, means gasoline demand will be strong and keep oil prices high.
- As a result, a domestic energy ETF should present an excellent short-term opportunity for investors, and a recent pullback in O&G stock prices is a good entry point.
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