Recall how I'm always talking about the futility of US oil production.
Here's how the dynamic works (or, more appropriately, "doesn't work"):
capex and production ramps up as plays become economic again
market becomes oversupplied
outspend (i.e. funding gaps) are plugged with debt, revolvers, and equity offerings
producers live to pump another day thanks to wide open capital markets (i.e. investors' hunt for yield)
rinse and repeat
Well, for those interested in the exact point at which US producers embark on "step 2" from the numbered list shown above, here's a simple chart from BofAML:
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