RE:RE:RE:Overbought Technical indicators for CJ affect investors
Kavern23, I think that you are really overestimating U.S. oil production abilities. These shale plays are not unlimited resources and will deplete like everything else. Not ONE new field has been found in recent years. Once the Permian peaks, it is game over. And there won't be a new game changing technology to suddenly extract more from existing fields such as horizontal drilling/fracking.
You mentioned that the EIA bumped Lower 48 States production by 100,000 bls/d last week and again this week. Well... they were simply playing catch-up with the weekly estimates since they said previously that January was averaging 12 million bls/d and they had kept production until 2 weeks ago at 11.9 million. Essentially, production is as flat as it gets since December and productivity per well seems flat at best to heading down per their own reports.
Centennial which is supposed to be the cream of the crop in the Permian led by genius Papa got its head hand over to him yesterday. Stock plunged 23% yesterday to a new 52 week low and is showing no sign of a bounce today with WTI up over 2%. They too are tapping the brakes and will use fewer rigs and try to live within cash flow.
PXD is trading like crapp today. Message seems clear from investors: stop producing like a bunch of f.. idiots! This will have a major impact on U.S. production.