Locator: 51700B.
Pageviews: with a run rate of 1.5 million / 24 hours right now, we should go over 98 million page views today.
Iran:
Investing: this is a market that clearly wants to break out, but several significant headwinds and it's September. Once the mutual funds and hedge funds have their third quarter in the bank, it should be an incredible fourth quarter. See disclaimer.
Pending: my favorite chart. Link here. Last week: $7.98 trillion. An increase of $20 billion puts us at $8.0 trillion.
Energy: for investors, are we in a perfect spot --
Mideast in upheaval; SPR at levels seldom (if ever) seen; China will have to buy oil at some point; US refiners may have access to endless amounts of heavy oil; the sleeper? Natural gas.
Coal: link here.
The big question: after its recent surge, did META hold? Holy mackerel --
Amazon's LEO:
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Back to the Bakken
WTI: $95.70. Slight decrease at the moment (2:22 a.m. CT, September 10, 2026).
New wells reporting:
- Friday, September 11, 2026: 19 for the month, 99 for the quarter, 456 for the year,
- 41627, conf, BR, HBU Badlands 6S MBH,
- 41568, conf, Oasis, Dolls Daisy 5301 31-31 4B,
- Thursday, September 10, 2026: 17 for the month, 97 for the quarter, 454 for the year,
- 41567, conf, Oasis, Dolls Daisy 5301 31-31 3B,
RBN Energy: higher cash flows, sunnier outlook not yet reflected in expanded E&P investment. Link here. Archived.
Like rays from the rising sun streaking into a cold, gray sky, sustained higher oil prices and a strong long-term outlook for natural gas has engendered a significant tonal shift to E&P boardrooms. Industry executive surveys in Q2 2026 and observations by oil service firms reflect an optimism that suggests producers are warming to increasing activity to boost oil and gas output.
The key question is whether that has translated into higher investment.
In today’s RBN blog, we discuss that shift in attitude and analyze midyear E&P guidance to determine the impact on actual 2026 capital spending.
Strict fiscal discipline focused on increasing cash flow over raising production has dominated E&P budgeting since the pandemic threatened the financial stability of a chronically overspending industry. After drastic cuts to capital spending in 2020 and 2021, surging commodity prices in 2022 and 2023 triggered rising investment to offset steep shale decline rates. But declining cash flows from lower commodity prices in the latter half of 2023 brought the industry to another inflection point. Producers couldn’t fund continued capex increases and sustain dividends and share buybacks without resuming the deficit spending that got them into trouble a few years ago. Their decisions about 2024 capital spending couldn’t have been clearer: maximizing free cash flow was the top priority. The total 2024 investment fell 3% to $62.8 billion and drifted slightly lower to $62.5 billion in 2025.
Moderation from the 2023 peak continued as the 37 E&P companies we follow guided to 2026 capital investment of $59.1 billion, down 5% from the 2025 level. This followed steadily eroding oil prices that drove pre-tax earnings to a five-year low of $5.13/boe in Q4 2025. But as we recently chronicled in Turn, Turn, Turn, the Iran war-driven rise in oil prices more than tripled pre-tax operating profits to $18.19/boe in Q2 2026, the highest since 2022. Cash flow also reached a post-2022 high of $29.21/boe, a 48% increase since Q4 2025. The major question for industry analysts as the release of these results approached was the impact of rising prices and profits on the level of capital expenditures. Producers focused on maximizing cash flow at the expense of growth (see No Sudden Movement) and resisted Trump administration pressure to pursue production increases to lower gasoline prices (see Know When to Hold ’Em). However, higher prices were an additional attractive incentive to invest in production growth to capture higher margins and reap higher cash flows.
The Q2 2026 Dallas Federal Reserve Energy survey, conducted in mid-June, showed a strong increase in optimism on the part of E&P executives. The Company Outlook metric soared from a negative 15.2 in Q4 2025 to a historically strong 48.2 in Q2 2026, driven by higher profit expectations from more than 50% of the firms surveyed. More than half of the producers reported weighing an increase in future business activity, up from just 20% in late 2025. The Uncertainty indicator also declined dramatically.
The midyear results of major oilfield service firms SLB and Halliburton also reflected a strong change in sentiment for domestic E&P growth. Both reported a “clear recovery” in North America. Halliburton’s North American revenue rose 7% from the previous quarter while SLB’s 4% North American growth was driven by a rebound in U.S. land revenues. Both managements said they were encouraged by the shift in attitude and expected incremental improvements throughout the year.
Despite the increase in industry optimism, though, the midyear 2026 guidance released by the 37 major publicly traded E&P firms we cover showed a slight decline in overall capital expenditures to $59.4 billion from $59.7 billion (far-right blue bars and left axis in Figure 1 below). This represents a 6% decline from actual 2025 investment and an 8% reduction from the 2023 peak. Total investment budgets for Oil-Weighted producers were down by nearly $600 million, slightly offset by a small increase in Diversified E&P investment. Capital spending by Gas-Weighted companies remained virtually flat.
