We have been bullish on oil prices all year and continue to find reasons to stick with that bet.
US oil production has increased by less than 1 percent during the first six months of 2019, down from nearly 7 percent growth over the same period last year.
The technological and engineering advances that allowed shale companies to unlock record amounts of oil have begun to level off. Production in the first 90 days of an average shale well, its most productive period, declined by 10 percent in the first half of the year compared to the 2018 average, according to research by Raymond James.
Activity has slowed and employment has fallen in some of the hottest oil regions. Permian Basin drilling has dropped 19 percent this year. Many of the service companies have shed staff and equipment. Even a sustained price increase would have a limited impact on shale production. IHS Markit estimates that US shale output would grow by 480,000 barrels a day in ...