Third-quarter conference calls indicated prudence reigns among the E&Ps, and most people would say thank you and amen to that.
Oil and Gas Investor
True, fomenting the revolution, whether political or shale, is exhilarating and daring and frightful. Keeping what you have won afterward is a different skill entirely, wrote Leslie Haines in her monthly column for Oil and Gas Investor. (Source: Hart Energy/Shutterstock.com)
The industry will be slowing down in 2020, that’s plain to see. It’s probably a good thing, although not an exciting situation that will generate splashy headlines; it may not get investors’ hearts to beat faster and open their wallets yet either. Third-quarter conference calls indicated prudence reigns among the E&Ps, and most people would say thank you and amen to that.
In most basins, the above-ground constraints of pipeline and gathering bottlenecks are coming to an end this year, so the E&P companies will have to rein in spending by their budget decisions as they plot their 2020 strategy, instead of due to bottlenecks. The go-go years of the early shale days have given way to a slo-mo pace: Keep production flat, or at the least, keep growth subdued and within cash flow.