http://www.wallstreetdaily.com/2014/12/12/u-s-oil-rig-count/ or just "suck It"
My highlights (less reading)..tb
Well, it looks like OPEC’s plot to run U.S. oil out of business has failed. At least, for now.
The U.S. Energy Information Administration (EIA) has released the official numbers in its December Drilling Productivity Report (DPR).
Despite plummeting crude oil and natural gas prices, drillers across the U.S. do not appear to be slowing down.
But will these productions levels last if prices stay Low?
The United States continues to expand its shale drilling, and yields have been increasing as a result of hydraulic fracking and enhanced recoveries of pre-fracked wells. Plus, the dollar remains relatively strong, which is a negative for global commodity prices. While the United States looks solid from an equity market standpoint, energy stocks have taken a beating.
Considering all that, we’ll likely face soggy energy commodity and energy equity prices, at least for the short to medium term.
But don’t get comfortable at these levels.
Any sign of future cutbacks, production disruptions, or heightened geopolitical tensions in the Middle East can easily trigger spikes across the board in all of these instruments.
So be alert and nimble to macro events that could turn these markets on a dime – we’ve been there before… and we could easily see a reversal again.
One thing appears certain, though, more volatility lies ahead.
Good investing,
Shelley Goldberg
