E&P Activity At A High, E&P Efficiency Slowsvalueplays
The new pipeline capacity will cause WTI to rise as shipping costs are lowered materially.
E&P Activity at a high, E&P Efficiency stalls a little. The data for these indices have a 2mo lag. Key to this data is the recent stall in US Crude Production which had recently fallen from 12.3mil BBL/Day to 12mil BBL/Day which recovered the last 2wks. Couple this to the news that pipeline capacity was being rushed to come on line in July 2019 and labor demand remained high and the trends make sense.
1) Limited takeaway capacity stalled field production and raised demand for labor to finish pipelines causing overall Activity to rise while stalled production resulted in a dip in Efficiency
2) Two pipelines just came into operation for the Permian which has dominated much of the employment/drilling/production data-Activity/Efficiency indices should continue to rise.
EPIC Midstream ships first crude on new Permian pipeline to Gulf Coast