News Release

Exploring falling rigs and rising production

EIR explains the inverse relationship between the decline in drilling rig count but increased oil production, as well as OPEC+ cuts and natural gas price sell-offs

byEnverus

CALGARY, Alberta (Jan. 17, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, has released its latest Fundamental Edge report, which focuses on global drivers for oil and gas prices through 2030, the five-year oil and gas supply and demand outlook, and price forecasts.

U.S. oil production is on pace to grow ~1.2 MMbbl/d E/E, above EIR’s prior expectations of 1.1 MMbbl/d. EIR experts attribute this growth to the Williston Basin, which is outperforming expectations but does not anticipate this to continue given the 25% rig count drop at the end of 2023. Also, U.S. natural gas prices have sold off considerably from October highs of ~$3.60/MMBtu due to a surge in supply growth and warm weather.

“Production in the Williston Basin has surprised to the upside, particularly in the growth seen over the past month, contributing to U.S. L48 production coming in ~200 Mbbl/d higher than we anticipated,” said Al Salazar, report author and director at EIR.

“We delayed Golden Pass LNG to March 2025 in our balances, which weighs on Henry Hub gas pricing in 2024,” Salazar said.

Key takeaways from the report:

  • U.S. oil production has outpaced our production growth forecast in 2023 driven by growth in the Williston Basin.
  • Downward pressure has built for 2024 gas prices due to expectations for a warmer-than-normal winter combined with recent acceleration in production growth.

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About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

Media Contact: Jon Haubert | 303.396.5996

View all Enverus news releases at Enverus.com/newsroom.

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