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Strategies & Market Trends : Natural Resource Stocks

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Hugh Bett

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From: roguedolphin	9/10/2025 1:24:59 PM
	2 Recommendations of 108538

Oil well productivity is slowing in the Permian Basin Interesting podcast: youtube.com Bottomline: He makes the case that based on well productivity growth the oil price can't stay below $59 ($57 to $63) for long because below that price most areas the D&C capex cannot be covered, and U.S. oil production will decline rapidly. The geology drives the oil price and most of the Tier One area of the Permian Basin has been developed. Technology advancements cannot make bad rock productive. Outside of the Permian Basin there is no other basin in the lower 48 that has productivity upside. The Cheap Oil (i.e. "Low Hanging Fruit") has been harvested. "Drill Baby Drill" will not happen unless WTI is firmly over $80/bbl. Natural gas is a much different story because demand for U.S. natural gas is going up and the rate of demand growth will accelerate after 2025. Go to the 17 minute mark of this podcast: https://www.youtube.com/watch?v=Br-ADPzH3Yo They discuss why U.S. natural gas prices need to go a lot higher for supply to keep up with demand growth. This will be to topic at next week's luncheon in Houston. Dan Steffens Energy Prospectus Group

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