RE:RE:RE:RE:RE:RE:RE:RE:NR Thoughts.Main reasons berish on US Shale:
Steel...steel and more steel....casing and tubing almost impossible to get currently 7to 12 month timeline for orders. Sure can steel some old used tubing from existing less productive well but casing cant do that....plus then the old tubing well has to be shut in...eventually this will get solved but doesnt look anytime in the near future
Labor...so many skilled labors have left the oilfield myself included and have no interest in going back
Shale is very Class 1 intensive..we all know how much sand material, chemical, etc is needed for a shale well....rates for Class 1 drivers for jsut highway trucking have increased dramatically making the oilfield much less appealing...would you rather drive interstate or be chaining up trucks to go through mud and snow lease
Sand is in short supply...no idea why I thought local texas mines were flush before covid...but currently sand in Canada and USA is ahrd to get
Rigs increasing are needed just to counter the rapid decline in ducs....frac spreads are what need to dramatically increase...
As shale ramps up again that treadmill goes faster and faster..that much more sand, casign tubing etc all needed to maintain that extra 1 million a day.
It can be argued shale was rolling over on its own Dec 2019 to Feb 2020 right before covid on its own...
Time will tell I guess