DRILLING DECLINE

While “Drill Baby Drill” is the mantra, crying in their beer may be the reality. OPEC has recently reopened the spigots boosting supply, pushing down oil prices. Moreover, the tariff announcement has triggered fears of trade wars which would reduce global growth and hammer international trade, reducing oil demand. With WTI now barely above $60/bbl, frackers are undoubtedly going to reduce new oil exploration and investment and consider production reductions.