I am not a big fan of Oil Price.com but on occasion they come up with something interesting. David Messler wrote this latest missive. Generally I agree with a lot of what he writes but in on this occasion I don't. It is likely to raise Mike's blood pressure so be warned.
The real howler is his definition of PUD's, which I always thought ( and others) was Proven Un-drilled and PDP was Proven, Drilled, Producing. Or is it I am loosing it at the age of 67, 46 years of which have been in the industry, but mainly refining.
Messler cites RBN Energy ( another ANALyst) for this pearl of wisdom and cites the increasing EBITDA of E&P producers, consolidation, and big reductions in the cost of drilling and fraccing. Am I missing something because most of the cost reduction has come from the service providers being well and truly screwed over by the E&P's. No mention is made of the recovery factors or the amount of oil left stranded in the ground in the rush to milk the cash cow. Short termism at its worst.
Mike is free to delete but then it will be USA ( United States of Amnesia -- Gore Vidal )
''President Trump will not be able tame inflation, and in fact I believe that his policies of cutting taxes and demanding lower interest rates will only make things worse. He makes the claim that increasing energy production will lower costs, but the fact is that U.S. energy production is already near all-time highs and lowering oil prices by 10 or 20% isn't going to eliminate inflation or lower costs by very much at all. It wouldn't affect things like insurance costs for example. Home prices have nearly doubled in the past 6 years, and the only way to bring this down is to build million of new houses to increase supply, which I doubt will happen. Tax cuts to put more money in people's pockets are actually the wrong remedy here, and will not only increase inflation, but will blow up the debt even more. Trump will be lucky if he can cut the deficit by 25% in the next 4 years, and can forget about ever getting a balanced budget no matter how many agencies and personnel Elon Musk manages to eliminate. Another thing is that Trump wants to bring back a lot of manufacturing to the USA, which I agree with as it's a bad idea to be too dependent on China. The problem is that American workers are extremely expensive, so anything made here will cost a lot more than the same thing made overseas. There's just no easy way out of this mess, and the root of the problem is that Americans in general are spoiled, greedy, and unwilling to make any real sacrifices. ''
Trump 2.0 will it be feast or famine ?
https://brucewilds.blogspot.com/2024/11/economic-feast-or-famine-ahead-opinions.html