Related Articles
Young professionals may pivot away from a career in oil and gas
Opinion
Forward article link
Share PDF with colleagues

Letter from Houston: Fiscal discipline has positives and negatives

No rush for a production rebound makes sense. But it may impact on the long-term attractiveness of a career in oil

The Texas oil industry—and production across much of the US more broadly—has, unsurprisingly, spent a year struggling to adjust for highly uncertain demand conditions. It still also bears the psychological scars of last year’s negative April WTI price. To briefly recap, overwhelming selling demand to close out long positions from paper traders unable to take delivery of physical barrels and a lack of Cushing tank capacity forced the expiring WTI futures contract to previously unseen lows. Physically traded WTI—along with other US grades, which often trade over the counter and share a positive correlation with WTI paper—also weakened considerably. As a reaction, according to the EIA, Lower-

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Bangladesh hails Henry Hub linkage in US LNG deal
4 August 2021
South Asian importer hopes for price advantage compared with Brent
ExxonMobil announces 2021 Power Play finalists and community voting
4 August 2021
Sixteen outstanding professionals are up for awards across four categories, with community voting now open
BP’s Angolan JV could provide future template
3 August 2021
The major’s pooling of non-core resources with Italy’s Eni may be a model moving forward
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video