sport football: The Little-Known Oil Play Poised to Skyrocket

Kamis, 01 Mei 2025

The Little-Known Oil Play Poised to Skyrocket

Keith Kohl/ May 1, 2025

The Little-Known Oil Play Poised to Skyrocket

There is a disconnect between reality and fantasy in the oil markets today.

Do you see it? If so, your portfolio will thank you for it later. When WTI crude prices plunged below $60 per barrel earlier this month, I tried warning you that oil stocks were a screaming buy.

Look, no matter how bearish you are on oil prices, the cold, bitter truth is that $50 oil would be disastrous for future energy security; nobody is disputing this fact. The trouble with cheap oil is that prices this low will spurn all hope of production growth here in the United States.

In fact, it already HAS.

Given the current low-commodity price environment, I told you that it was only a matter of time before we’d see it impact drilling activity. For now, just push aside the fact that the number of oil rigs actively drilling in the lower-48 states has been falling for seven straight weeks… which is bad enough.

Some of the biggest oil companies are already starting to cut back on spending, too. Chevron announced a few weeks ago that it was slashing its 2025 capital budget by $2 billion, which includes a sizable reduction in the Permian Basin.

They’re not alone, either. Both Exxon and ConocoPhillips — two of the largest players in the Permian — are also reducing capital spending in the region this year.

The dominoes are starting to fall thanks to cheap oil, but there’s still time to sit up and take notice before the rest of the market catches on...

>>> Read the full article here.

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