Whiting + Oasis Exceeds Threshold For Windfall Profits Tax — March 11, 2022

Fact check me on this:

• Whiting: 260,000 boepd;
• Oasis: 70,000 boepd; 

Merger still doable but Whiting may need to cut production a bit.

Both WLL and OAS are trading down more than most other oils today.

And then Jen Psaki wonders why US shale is not drilling.

Windfall profits tax bullish for oil overall. Not so much for some investors. CLR is “safe.” DVN is not safe unless they break their company into Devon East and Devon West. Or maybe Devon Joe and Devon Kamala. I would go with Devon J (DJ) and Devon K (DK).

My hunch: Warren Buffett, a democrat, is probably talking to the folks sponsoring this bill. I’m lovin’ it. It’s an open book test for oil investors.

To keep this simple, any policy coming out of Washington (DC), think of it as:

• incentivizing or not incentivizing the SUPPLY SIDE
• incentivizing or not incentivizing the DEMAND SIDE

A windfall profits tax is dis-incentivizing the SUPPLY side.