26 Mar Signals Suggest Improving USA Upstream
In this week’s Rigzone market commentary, Validere’s Mark Le Dain sat down with Matthew V. Veazey at Rigzone to discuss the signals suggesting the strengthening in the U.S. upstream alongside Energy Advisors: Tom McNulty and Phil Kangas. Keep reading for details.
The North American rig count has gone up again with Healthy WTI and Brent prices. Tom McNulty thinks that the capacity that exists in North America will come back online given the demand from Asia.
Phil Kangas added that the repercussions from the Texas Freeze seem to be in the rearview mirror after the addition of nine new oil rigs. Also, there are good signals of the increasing upstream demand from early vaccine roll out and travel.
As for surprises from the week, Mark Le Dain mentioned the blockage of the Suez Canal. More importantly, he stated his concerns for how long the cargo ship will continue to block the canal. Le Dain expects the blockage will negatively impact refinery margins.
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