"“Between 2006 and 2019, the top 50 U.S. oil producers spent $170 billion more in capital expenditures (capex) than they collected from operations, using debt and equity to cover the deficit. ‘Effectively, there were no returns’ for shareholders.”
- Paul Sankey, independent oil analyst, cited in Reuters article"
The oil companies are finally making some money. They won’t be too anxious to ‘oversupply’ the market and drop prices significantly…if they even could as OPEC production is 2.7m bbl/day below target, Nigeria slips to major new low in exports, Libya output disappears, etc. Russian fields are struggling as US companies bailed out of joint projects. (wrote them off).
Summer gas demand will be up…
US shale from Permian Basin is increasing slightly but just a drop in the bucket.
Good reading as always with weekly updates.
As for ‘infrastructure’…concrete (highly energy intensive for the cement part), asphalt, steel, all up 30-80%. Asphalt comes from oil. Steel uses lots of NG/coal and NG is up from a buck or two a therm to $8. It all ripples down the supply chain and those big construction machines can use 500 gallons of diesel a day!