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| For awhile some of the shale producers were constrained by takeaway capacity.. forced to ship by rail.. aka north Dakota bakken.
We've added pipeline capacity now.. both to the dakota's and added capacity in Texas. Thus we've seen a surge in production.. now domestic producer face some of the same constraints as soybean producers.. export markets to China are constrained.. and input costs such as steel.. for machinery and drill pipe are rising on the tariffs.
Itll be interesting to see how things shake out..
The other bearish factor is that.. like the get same battleship.. previous high prices have found alot of drinkable locations.. "we've found the mark.." so we know where to drill.. in other words.. the market doesn't need to offer a premium to wildcat..
Edited by JonSCKs 11/23/2018 08:28
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Crude oil?
