Drying Up"
Oil prices are bouncing back as the selling is drying up and so is the investment in the shale oil patch. Net longs for oil have reached a low for the year and reports of a pullback in investment in shale oil should be raising some concerns. Even as Baker Hughes Inc. reported that producers added 11 more rigs for the 23rd week in a row, there are signs that the rig party is over.The Houston Chronicle reports that, “Wall Street appears to have lost its taste for the resurgent U.S. shale industry as oil prices tumble and energy share prices fall.” "Oil companies have only raised $3 million this month through selling new shares to investors, a dramatic drop in the public equity offerings that have helped fuel the return of drilling rigs across the nation this year. It’s a stark shift in investor sentiment after last month, when producers like Kosmos Energy and RSP Permian collected a combined $1.0 billion from stock-market investors. That was before U.S. oil prices took a month-long tumble of around 20 percent to $43.15 a barrel on Friday. The shale players will have to change course as the “adding rigs at will” plan seems to be blowing up in their face."
https://blog.pricegroup.com/2017/06/26/drying-up-the-energy-report-062617/