Some of the most important numbers of early-2019 are trickling out and we’re tracking them here so you don’t have to. There’s a lot more to this story… Login to see the full update… To read this update and receive our research newsletters, you must be a member. If you …
Read More »5 Things To Think About For The 2019 US Oilfield Service Outlook [Macro Musings]
WTI at $42 on Christmas Eve was something that that almost no one expected on Halloween. The chief debate that oilfield suppliers are grappling with in early-January is how macro volatility will impact 2019 E&P capex spending, and as such, jolt the addressable US onshore market. We provide analysis in …
Read More »It’s Early, But Here Are The Most Important Things Oilfield Service Customers Have Said About 2019
Equally as important as the 2019 spending program figures being released this season is the accompanying management commentary. In fact, this is actually more important than the headline numbers in some cases. We discuss what has caught our eye so far in the 2019 planning season and also provide readers …
Read More »Fully Delivered Frac Sand Has Carved Out A Meaningful Chunk Of E&P Wallet [Chart Of The Day]
In some large tight oil well AFEs these days, the frac sand line item can be as much as a quarter of well cost. Of course there is a lot more involved in shale development capex than just individual well costs. So for this chart of the day exercise, we …
Read More »A Look At How Permian E&P Spending Factors Into The Bigger Picture [Chart Of The Day]
Previously in our weekly rig count series, we noted that the Permian horiztonal rig count equals eight other large shale plays combined. Today, we extended this thought exercise to spending, dusting off our capex model to see how Permian drilling and completion budgets factor into total US and global E&P …
Read More »Cherry Picked Datapoints From A Bevy Of New O&G Presentations This Week
Since New Year’s Day, ~40 fresh IR decks have hit the wires from the O&G industry… and that doesn’t even include downstream or midstream. The presentation dump came ahead of the year’s first significant O&G investor conference this week. We have cherry-picked the following datapoints with 2018 implications from public …
Read More »Don’t Read Too Much Into The Permian Rig Count Trajectory Lag. It Is Not A Sign Of Animal Spirit Inflection
We have seen some recent market commentary interpreting a lackluster Permian rig count response to the 4Q17 oil price rally as evidence of a change in E&P behavior or appetite for Permian development. We do not believe this interpretation is accurate. In this update, see what we believe are the real …
Read More »The Independents May Intend To Temper Tight Oil Growth Next Year, But The Majors Sure Don’t…
On Tuesday, we warned that by taking their foot of the capex gas pedal at this point in the cycle, the Independents risk ceding share in shale development to the Majors. On Wednesday, Chevron’s 2018 budget release confirmed that this indeed will happen if actions follow words. There’s a lot …
Read More »Is It Really Different This Time? [Chart Of The Day]
We believe the recent surge of returns-focus rhetoric from E&Ps is having a considerable impact on consensus expectations for US shale E&P spending. This was evident in our recent survey, where participants expressed a bullish view on y/y oil price trends yet waxed conservative on the spending outlook. In this …
Read More »Establishing A 2018 Tight Oil E&P Capex Growth Floor? The Most Budget Conscious E&P Set A 16% 2018 Increase Vs. Prior 2017 Plan
Anadarko’s 2018 capital spending program was released Thursday morning. It is one of the first detailed 2018 E&P budgets to be released this budget season. Given their focus on discipline and returns and leadership in crafting a sustainable framework for developing tight oil, Anadarko’s E&P capex budget should help establish …
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