RE:US oil production is slowing,significant ramifications :spurwing2 wrote: https://seekingalpha.com/article/4719938-us-oil-production-is-slowing-ramifications-will-be-significant?mailingid=36677661&messageid=must_reads&serial=36677661.1065109&source=email_must_reads&utm_campaign=Must%2BReads%2Brecurring%2B2024-09-09&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads
Moving forward, the growth struggle is likely to continue
This leaves us in a situation where US oil production is set to struggle from an accounting perspective, but more importantly, fundamentals continue to suggest that outside of a production spike in reaction to a significant price spike (think $95+ WTI), production growth on the whole is unlikely to grow sustainably above existing levels.
There are a number of signs that point toward stalling production growth. Perhaps the most prominent of which is the divergence between rig counts and production. Crude oil rigs in the US peaked at ~623 in late 2022 and have been declining ever since. Production gains over the past 24 months have therefore primarily been a result of productivity gains.