Suncor Energy Inc T.SU

Rig counts falling, Frac spreads falling

[MigraineCall]

This new data is more proof of further signs of decreasing new US oil and gas supplies coming online. The growth in US oil supply the market is expecting has been overestimated. 

After the 2020 oil wipeout, many frac spreads were scrapped, so US frac spread capacity today maxes out at only about 325. Operating frac spreads have now dropped to 258 last week.

The rig count has also dropped to 772 now, far below capacity.

Granted, a portion of this is seasonal, but as a leading indicator, it shows there are challenging times ahead to maintain US oil production levels.

Without that daily SPR release feeding the crude market, I wonder where all that extra oil is going to come from to stop the downward slide in stockpiles, let alone refill the SPR?

https://oilprice.com/Energy/Energy-General/US-Oil-Gas-Rig-Activity-Dips-In-First-Count-Of-New-Year.html

[mrbb]

i agree, the storm cloud is now brewing up for the next storm Europe is lucky, they got saved by global warming. The climate alarmists only talk about the Europe warming as proof of climate change, not the good side of saving europe from russia sanction. They don't talk much about abnormal cold on the north american continent. To me, the net effect of the abnormal warmth and cold are