Reese Energy Consulting today is studying the latest news from Rystad that projects publicly traded E&Ps this year will generate super-profits leading to a record $348 billion in free cash flow. This compares to the all-time high of $311 billion in 2008 when oil averaged $100 per barrel. Revenues this year are expected to increase by $500 billion—up 55% compared to 2020—and new greenfield investments are set to double. Have the planets aligned to usher in a “new era” for shale amid higher oil and gas prices, CAPEX discipline, reduced debt, restrained production, and happy shareholders rounding out the astrological chart? Analysts from Bloomberg, Wood Mackenzie, and Deloitte seem to think so and many are still predicting $100 crude during the second half. While nothing lasts forever, you have to admit it’s good to catch some wind in the sails for a change.
What do you think? Learn more about Reese Energy Consulting and our range of energy services for upstream, midstream, and downstream operations at www.ReeseEnergyConsulting.com.