Commodity Trade Mantra

Posts Tagged ‘Oil Rigs’

With A Rebound In Oil Prices, Will Drilling Activity Return?

On June 6, Morgan Stanley released a report saying that “all eyes” are on the U.S. to see if drilling will return now that oil prices are back above $50, after having rallied roughly 85% since February. There are a few early signs that drilling is starting to begin again. The oil rig count jumped by nine last week to 325 active oil rigs, the sharpest increase since December 2015.

Why Price Of Oil Is More Inclined Towards $20 Than $80

If the price of oil stays at this level for the rest of the year, we are going to see a whole bunch of energy companies fail, billions of dollars of debt issued by energy companies could go bad, and trillions of dollars of derivatives related to the energy industry could implode. This is just the beginning of the oil crisis.

What The Rig Plunge Really Means For The Price Of Oil

The market fails to appreciate that the relationship between rig count and oil production can be deceptive. Headline rig count declines may look impressive, but as we look at the data, much of the drop in oil rig count has come in low yielding rigs. The most productive rigs will likely remain as long as possible.

America’s Shale Boom is Not Dead

America’s oil boom is real. Underneath domestic soil sits a massive supply of oil and gas – decades worth of supply. There’s no “great lie” found at the heart of America’s shale boom. Many of the well-run players in this space will never get close to default, let alone spark a 2008-type meltdown. The production is no flash in the pan either.

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