Despite high oil prices, capital discipline has held drilling and completion activity in check as most public operators have focused on paying down debt and returning cash to shareholders instead of growing shale oil production. As WTI, currently trading at close to $85/b (a seven-year high), continues to increase, capital discipline is likely to be relaxed primarily by large and mid-caps while the majors are expected to maintain the course. Besides capital discipline, production growth next year is limited by how fast operators can physically increase rigs as they continue to face difficulties hiring qualified people. Production growth in 2022 under a $ 100/b case could be 1.2 million b/d higher than our reference case but likely reduced to around 0.8 million […]