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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
The US oil output growth rate is decelerating due to declining acreage productivity, oilfield cost inflation, supply-chain bottlenecks, labour shortages and a structural shift in investment strategies. A reversal in the slowdown in production growth is unlikely in the short to medium term according to Bloomberg.
- Well productivity and oil recovery rates of major shale assets are declining after years of intensive drilling resulting in a potential shift to less-productive acreages according to Bloomberg data.
- A breakthrough in stimulation and hydraulic technology would be required to reverse the declining productivity however this seems unlikely to happen soon.
- Oilfield inflation may moderate and soften throughout the year but will still linger with companies focused on capital returns over production targets.
- Even the recently approved Willow project in Alaska is unlikely to reverse the decline in production growth.
- Earlier this month EIA estimated US crude oil production slightly lower in 2023 at 12.44mb/d and 12.63mb/d in 2024. Output was estimated to grow annually at an average rate of just 190kb/d in 2024.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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