News Release

Oil & Gas’ Latest Rally Encourages Growth Within Cash Flow

byEnverus

Calgary, Alberta (November 10, 2021) — Enverus Intelligence Research, a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company, has released its latest FundamentalEdge report focusing on the company’s five-year supply, demand and price outlook.

“Current price levels support production growth of more than 10% even while spending well within cash flow, but investor definitions of ‘capital discipline’ are evolving through the run-up in prices. Recent commentary from public operators suggests the growth discussion has returned, but investor pressure to focus on cash returns remains unyielding,” said Farzin Mou, vice president of Enverus Intelligence Research.

Jen Snyder, managing director and head of North America Macro Intelligence Research, who co-authored the report, added, “We expect oil and gas production growth to outpace demand growth in 2022 and 2023 — a return to normal weather conditions in key markets and a recovery in upstream activity levels this year will restore some balance — yet operators should plan for shorter cycles in prices.”

Key takeaways from the report:

  • OPEC shows no signs of wanting to arrest the price rally ahead of weaker balances in 1H22, and the resulting strong prices set up an increase in market share for North American liquids. We believe U.S. production will grow ~600 Mbbl/d and ~890 Mbbl/d exit-to-exit in 2021 and 2022 before moderating in the medium term.
  • Enverus believes the Permian will continue to drive growth, accounting for ~96% of 2022 exit production growth before moderating thereafter.
  • North American gas markets head into winter without much cover against colder-than-normal weather with: storage inventories below five-year averages, weather-normal injection rates below norms, coal-fired power plants at capacity and global gas prices too high for economically feasible cuts in U.S. LNG feedgas demand.
  • Dry gas production growth of nearly 4 Bcf/d exit-to-exit in 2022 remains concentrated in the Haynesville and Permian. Moderation in oil-weighted activity slows Permian volumes to less than 0.7 Bcf/d growth exit-to-exit per year thereafter while the Haynesville’s growth trajectory follows the LNG export outlook, ebbing in 2023-24 and accelerating in 2025-26.

Download Preview

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.

Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Enverus Press Release - Enverus Instant Analyst™ technology added to its AI-powered product portfolio
News Release
ByEnverus

Enverus, the most trusted energy-dedicated SaaS company, today announced it has added Instant Analyst™ technology to its market-leading product portfolio. Built on nearly 30 years of artificial intelligence software implementation experience, the company leads the way in generative AI technology...

Enverus Press Release - EPA’s Quad O regulations expected to trigger tsunami of plugged wells
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, has released a report that details the impact that the EPA’s Quad O regulations will have on upstream oil and gas producers in the U.S.

Enverus Press Release - Core Eagle Ford, the gift that keeps on giving
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has recently released a report identifying the high-grade locations in the Eagle Ford where recoveries remain high despite denser development.

Enverus News Release - The upside of repowering wind
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, has released a report looking at how onshore wind capacity additions in the U.S. have changed over time and why repowering older projects is gaining momentum.

Enverus News Release - Utility growth prospects: Quantifying long and short opportunities
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, has released a report looking at state-level renewable power adoption and population growth to estimate utility-specific long-term growth rates. In the report, EIR calculates implied value...

Enverus Press Release - Enverus named to Alberta’s Top Employers list
News Release
ByEnverus

AUSTIN, Texas (Jan. 30, 2024) — Enverus, the most trusted energy-dedicated SaaS company, has again been named to Mediacorp’s Alberta’s Top Employers list. “Being acknowledged once more as one of Alberta’s premier employers is a remarkable achievement for Enverus. It...

Enverus Press Release - $144B of transactions in recording-setting 4Q23 for upstream M&A
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, is releasing its summary of Q4 and full-year 2023 upstream merger and acquisition (M&A) activity. Q4 recorded a massive $144 billion in upstream M&A, the largest...

Enverus Press Release - Exploring falling rigs and rising production
News Release
ByEnverus

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...

Enverus Press Release - Enverus releases Top 50 Public E&P Operators of 2023
News Release
ByEnverus

Enverus, the most trusted energy-dedicated SaaS company, has released its list of the most prolific 50 public oil and gas operators in the U.S. based on gross operated production last year. ExxonMobil, Chesapeake Energy and EOG Resources led the list...

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Register Today

Get Energy Transition Research updates straight to your inbox by filling out the form below.

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert