Deltec Think About This Oil Is Not Gushing | Page 7
Think About This
US DRILLED BUT UNCOMPLETED WELLS
10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000
2014 2015 2016 2017 2018 2019 2020 2021
US Drilled but Uncompleted Wells ( left ) Completion Rate ( right ) Sources : Bloomberg , EIA , Deltec
As a result of the recent surge in energy prices and the severe energy crunch across Europe , Asia and the Rest of the World , OPEC + has come under pressure from the IEA and the White House to ramp up production . Recall that the group agreed in July to collectively boost output by 400,000 barrels per day a month until at least April 2022 , to phase out the 5.8 million of production cuts implemented in 2020 . In their most recent meeting they kept their 400,000 barrels per day production increase unchanged . We think the belief that OPEC and its members can come to the rescue is misplaced . We think only a few OPEC members are in a position to boost their production . We think many will struggle to even meet their pre-pandemic OPEC quotas . Sharp curtailment in production is not easily switched back on and many jurisdiction will struggle due to years of underinvestment .
For example , Africa ’ s oil giants Nigeria and Angola have been hard hit . The two countries have pumped about 276,000 barrels below their quotas for more than a year . In Nigeria , getting oil flowing again has proved to be a big challenge due to a shortage of workers , huge maintenance backlogs , and tight cash flows .
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