Enverus: Hurricane Ida Recovery Boosts U.S. Supply Expectations

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byEnverus

Calgary, Alberta (November 9, 2021) — Enverus Intelligence Research, a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company, has released its latest PetroLogic report covering price expectations for the near-to medium term.

“We are upgrading our 2021 Y/Y U.S. oil supply growth forecast to 600 Mbbl/d on the back of an earlier-than-expected recovery in oil production affected by Hurricane Ida. As a result, our 2022 projection for the country’s increased dropped to 890 Mbbl/d, a somewhat conservative view that could be upgraded by year-end to guidance by public U.S. operators,” said Farzin Mou, vice president of Enverus Intelligence Research.

Bill Farren-Price, director at Enverus Intelligence Research and co-author of the report, added, “Despite the stronger 4Q21 U.S. supply forecast, we lifted our price view for the quarter by $6/bbl. The higher outlook acknowledges OPEC shows few signs of wanting to cap the price rally. Nigeria and Angola remain well below production targets with other producers hardly making up the shortfall. We believe OPEC may be prepared to defend Brent in the $70s rather than $60s, a tacit inflation of the base for its preferred Goldilocks price range.”

Key takeaways from the report:

  • U.S. operators affected by Hurricane Ida shut-ins are bringing back oil output faster than we expected last month and we now expect significant volumes to recover by year-end.
  • Despite our expectations for strong 4Q21 U.S. supply growth, we revised our price view for the quarter by $6/bbl to reflect OPEC’s lack of willingness to cap the price rally.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus Intelligence Research’s expert analysts.

About Enverus
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.

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