Baytex Energy Corp T.BTE

JD, Red, Td et al...great graph

[BayStreetWolfTO]

I found this a while ago. Now with the price of oil near $100 historically that would mean about 1,500+ rigs running

If people are looking for the disconnect this graph paints the picture.

Very clear.

[jdmecomber]

So not even half currently, I found 793 in North American on 04/29 I found this a while ago. Now with the price of oil near $100 historically that would mean about 1,500+ rigs running If people are looking for the disconnect this graph paints the picture. Very clear.

[BayStreetWolfTO]

Hi JD, as of 4/29 552 oil rigs. Yes now you see the challenge Try to plot to the dotted blue line what price of oil historically matches 552 oil rigs. You got it...the line history repeats itself while mostly true not so much this time when so many rigs were sold for scrap in the downturn. Now you also have a historic supply chain crisis which has never been seen in my lifetime. It's a new

[jdmecomber]

Great info BAY.  The big question is how many years to dig us out of this hole.  Very interesting. 

[BayStreetWolfTO]

JD, that is the million dollar question but your on the right track. Even if O&G companies decided they wanted to go full growth the issue of equipment scarcity isn't going away. So you would have to ramp services companies (equipment and labour) I would estimate a 5-7 year oil bull market in a normal scenario but this is not a normal cycle. So my personal belief is it tacks on a couple

[JohnnyDoe]

you look at these types of graphs and they support that drill baby drill has been the historical response to high prices. Today, you've got the Biden thinking that drill baby drill will be the typical response but it isn't and it won't be. First off the industry has been starved of capital due to wokeism, then you've got the labour shortage, then you've got the sidelined drill