Locator: 44836B.
A reader who follows the Bakken and the oil sector in general much more than I do sent me this note:
- the two rigs pulled out of the Williston basin included one from North Dakota and one from Montana,
- that was the last rig that had been drilling in Montana
- [for the "longest time" I think Montana Bakken had two rigs]
- this week saw the biggest drop in oil rigs (15) since the same week of 2020 [US rig count, I believe, not global]
My quick reply, not-ready-for-prime-time:
- and this is just the beginning of summer -- drilling should be at an all-time high...
- three things to think about:
- lots of talk about global recession; China slump in oil demand; even OPEC thinking about cutting oil production
- rigs and completion strategies just keeping getting better (more rigs, more drilling / rig)
- still need to post XOM article regarding this
- oil companies focusing on free cash flow; returning cash to investors (cut rigs / cut CAPEX)
I found the XOM article interesting. Would like to see what their ultimate game plan is.
ReplyDeleteAlso had to chuckle when all the talking heads exploded last when WTI dropped to $67, talk of it heading south was apparently greatly over blown as it is now bumping $72 again. Silly people.
Thank you for the reminder. There are actually two XOM articles with which I need to address: XOM and Pioneer Natural Resources (PXD) and the Bloomberg article about XOM's plan to focus on completion strategies which could double new shale production.
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