Analyst Takes Trading and Risk

Analyst takes: October’s energy market in focus

byChris Griggs

As we commence October, it’s crucial to examine the ever-evolving energy landscape from the past month. Our Enverus Intelligence® | Research (EIR) team has diligently dissected key trends and breakthroughs, delivering insightful and data-driven perspectives that empower you to make informed business decisions. By remaining vigilant and up to date, you’ll be strategically positioned to seize emerging energy opportunities as the present themselves. Dive into the latest insights and maintain a competitive edge in the dynamic energy market. 

Bottoming activity leads to pricing stability (Oct. 27, 2023)

In EIR’s view, upstream activity has recently bottomed out, and they expect a sustained, albeit moderate, recovery through 2024. Consequently, horizontal rig utilization will return to >80% by year end and pressure pumping utilization, which is bolstered by retirements of older equipment, will remain >85%. Five pumpers now control ~75% of the pressure pumping horsepower, resulting in a more discipline sector this cycle by emphasizing per fleet profitability and minimizing lower margin wear on equipment. 

A momentous shift in personal transportation (Oct. 19, 2023)

EIR anticipates a momentous shift in the automotive landscape, with the electric vehicle (EV) share of new sales across their covered regions reaching 68% by 2030 and an astonishing 91% by 2035. This transformation hinges on the broader adoption of affordable Chinese EVs in Asian, European and Australian markets. Equally important is the commitment of states that have embraced California’s Zero Emission Vehicle policy, as they must meet their pledged targets for EV sales. This vision also foresees a significant decrease in gasoline and diesel consumption in EIR’s covered regions, forecasting a reduction of approximately 3.5 million barrels per day by 2030 and 6.1 million barrels per day by 2035. The road ahead is electrifying, and we are poised for a monumental shift towards sustainable mobility.  

Time to pay attention to Rockies gas (Oct. 6, 2023) 

Rockies gas production, aside from associated gas growth in oil plays, has been declining since 2012. However, significant increases in well-level recoveries are evident in dry gas plays like Pinedale, Piceance, Jonah and the Uinta’s Natural Butte area. Strong recent realizations tied to west coast exposure paired with long-term inventory concerns in the Haynesville and an inability for Appalachian operators to grow meaningfully due to infrastructure constraints mean the Rockies gas plays demand increased attention.  

Endorse the pivot towards the future by connecting with us on LinkedIn, becoming part of a conversation essential for the future-focused leaders in energy. In the month of November, EIR is poised to serve as your compass, decoding the intricate nuances of this change-ridden industry. 

*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. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here. 

Chris Griggs

Chris Griggs

Chris Griggs is the product marketing manager for Enverus Intelligence® | Research (EIR) and Trading & Risk at Enverus, where he leads the development and communication of the value these products provide various industries, including oilfield services, investment funds, wealth management departments, banks, E&P oil and gas departments, and midstream operators. Chris helps provide customers across the energy ecosystem with the intelligent connections and actionable insights that allow them to uncover new opportunities and thrive. 

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