Energy Sector

[Dalal.Holdings]

 

So the incoming President, Treasury Secretary, and Energy secretary all want cheap energy as the foundation of the economy the next 4 years.

 

Don't worry guys, I'm sure this is bullish oil

 

[SharperDingaan]

Interesting discussion ...

 

Keep in mind that today, much of US shale is owned and/or controlled by the majors; business is a lot more rational that it used to be.

 

Of course there will be more drilling; but in existing fields it will very likely be fewer wells with longer laterals, in manufacturing mode, and with multiple bores from the same pad. Royalty and tax holidays on the new wells, environmental forgiveness if specific metrics are achieved, etc. NG exports ramped up, and multiple gas powered generating stations built to give the rising gas cut a market, end the electricity brownouts, and provide the power should EV develop further.

 

Of course everybody wants new blocks of virgin land; but it doesn't mean they are immediately going to drill beyond delineating what they get. Can't come up with a plan when you don't actually KNOW what you're working with; and even then ... immediate production may not be the optimum approach.

 

Everybody exports/imports various grades of oil; some of it purely because of geography, most of it purely because of production and consumption mismatch. For the most part, the US has too much light and not enough heavy for refining purposes. Trump guarantees a sizeable new gulf coast refinery that processes primary light, and there will be material change.

 

Different PoV.

 

SD