Free Trial
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 DRILLING
Government and consumers are trying to put pressure on US producers to increase production instead of paying out to shareholders and building cash reserves.
- EIA data shows US crude production has increased from 11mbpd at the start of 2021 but has only increased from 11.8mbpd to 11.9mbpd so far this year.
- After struggling for years, producers are in no hurry to spend money to increase output. Some government officials are calling for a windfall tax on the energy companies, but producers warn this would kill any incentive to drill more.
- Drillers say material and labour shortages are limiting production increases and new drilling would erode capital efficiency and could lead investors to exit.
- US driller profits have increase significantly as market prices have rallied with BTU Analytics showing major US shale could hit $90b this year compared to $37b in 2021.
- The graph below shows the share price of some of the leading US oil producers:
Source: Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok