This latest update does a deep dive into the U.S. fracking industry in particular and oil industry in general. It addresses important questions like: how long will the Permian inventory last? What is the latest update on Russian fuel exports? What are companies like KLX, STEP planning ahead? Then, of course, we have the latest installment of Mark’s Insights that provides the reader with a holistic outlook of both the global markets and macro-economy.
1. Monday Macro View: Permian Inventory, Russian Fuel and Lower 48 – PREMIUM
In recent months, the Permian Basin has continued to prove its vital importance to the U.S. oil industry. But how long can this go on? Data reveals that there are still approximately 25,000 undrilled locations left in the Midland Basin, a number that might seem promising but becomes problematic when considering the economic viability of these wells. Prices are a key factor. As oil hovers around $73 per barrel, a far cry from Saudi Arabia’s fiscal breakeven point of over $96 per barrel, it’s clear that not all of these locations in the Permian will be economically viable.
2. KLX Energy’s Perspectives in Q2: Key Takeaways – PREMIUM
KLXE’s revenue per rig in Q2 2024 was up by 10% sequentially, reflecting the company’s market share gains. Readers may note that the company’s revenues strongly correlate with the US rig count. Despite a relatively flat rig count in Q2, its performance was steady in Q2 due to enhanced laterals, completion technologies, and production and intervention services. Read more about KLX in Avik Chowdhury’s latest.
3. Primary Vision Insights – ENTERPRISE
You can’t miss Mark Rossano’s latest installment of the Insights as it talks about the latest developments in global oil markets in an immensely comprehensive manner. He goes on to relate this to the overall economic conditions in the U.S., Europe and China. A must read!
4. STEP Energy’s Perspective in Q2: Key Takeaways – PREMIUM
This article does a deeper dive into the industry and its current outlook. The company expects its fracturing and coiled tubing divisions to stabilize in Q3 through Q4, although activities can decrease compared to Q2. It anticipates a slowdown in activity during Q4 as clients exhaust their capital budgets. In 2025, however, activities can bounce back following the TMX and the completion of LNG Canada. In Q1 2025, its Canada performance can mirror Q1 2024. Avik Chowdhury discusses it in detail here.
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