Banter and General Comments .. BRK, page-2480

It's very encouraging seeing the current restraint from US operators to draw on or seek capital and rush back to a drilling frenzy. HFI Research recently posted a chart with the rig count and frac spread count running parallel with each other..meaning that drilling is meeting completions of wells currently.

Despite rises in US inflation including cost of steel and well casing costs that are also difficult to source, there is a few bullish indicators on US shale at the moment. The Permian basin has been the biggest producer of light shale oil, making the bulk of US production. However Permian basin operators are burning through the drilled and uncompleted wells at a fast rate to meet the current supply demand as can be seen in the following chart and Web link.



https://public.tableau.com/app/profile/ron.h8870/viz/Energies-MonthlyData/ContinuousLineGraph

Remembering the decline curve on horizontal wells post completion, there will be continued emphasis to either drill or complete wells drilled pre pandemic. Basically easily accessible stock is being utilised by operators.

Jet fuel demand will also increase post pandemic coupled with Bidens infrastructure spend that will have a heavy reliance on oil and gas derivatives.

It has recently been reported that any US release of SPR would possibly lower the oil price by $2 per barrel only...that is if KSA and OPEC do not cut supply as they are back to key production and set the tone.

Cold northern weather is approaching with snow on the ground in some parts, watching the energy supply balance as well as eastern Europe, Taiwan and Iran...always something.

Anyways that's my view of the macro environment, a rush or not to get Rangers drilled..its coming sooner than later...Brookside is in the box seat with Rangers to eclipse Jewell.

Big cheers and shout out to Dan and TheProfessional for thier effort and dedication.

Keep well cheers Paul