PERFECT STORM9 Feb 2021 00:06
The latest Baker Hughes rig count showed that as of January 29, 2021, there were just 295 rigs in the U.S. drilling for crude oil — more than 400 fewer rigs than were active a year ago!
Drilling budgets have been slashed dramatically over the last year, with companies turning to their drilled-but-uncompleted (DUC) wells to keep production steady. These wells comprised more than one-third of new production in the Bakken.
However, the DUCs won’t save us in the long run.
Goldman Sachs is already clamoring for oil to top $65 per barrel by the end of this summer.
We’re in a perfect storm for higher oil prices, and the only question left is where to find those beaten-down, hidden investment gems inside the oil sector.