It has been crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices has raised the incentive to keep an eye on companies operating in the most prolific basin. In the Permian, the EIA projects oil production to rise by 15,000 barrels per day to 5,707 MBbls/D in June. Of all the resources, the Permian will witness the highest increase in daily oil production next month, according to the EIA’s drilling productivity report. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian. ![]() In June, total oil production from shale resources in the United States will likely increase by 41,000 barrels per day to 9,332 thousand barrels per day (MBbl/D), per EIA. Energy Information Administration (“EIA”) projected the average spot price of West Texas Intermediate crude at $73.62 per barrel this year, still a handsome price for upstream operations. Also, in its short-term energy outlook, the U.S. West Texas Intermediate crude price is trading at more than $70 per barrel, which is highly favorable for exploration and production activities. Amid such a scenario, stocks that could gain are Diamondback Energy, Inc. ( FANG Quick Quote FANG - Free Report), Pioneer Natural Resources Company ( PXD Quick Quote PXD - Free Report) and Matador Resources Company ( MTDR Quick Quote MTDR - Free Report). Thus, with increasing drilling activities, production will possibly increase, aiding businesses for explorers and producers. ![]() Upstream players will likely keep increasing their operations in prolific shale resources, in turn raising their count for drilling rigs. Since the beginning of this year, the oil pricing environment has favored exploration and production activities.
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