An update on the ongoing energy crisis and disappointing OPEC+ production numbers. Bison estimates that spare capacity is overstated by at least 1.8MM bbl/d.
Oil demand will likely outpace new supply and inventories are drawing down fast, resulting in a tighter market more susceptible to price increases moving forward.
The suburbanization trend has accelerated since our first white paper on the topic year ago. As we move into a tighter-supplied market, subrubanization will remain an under-appreciated driver of oil demand moving forward.
Shortages of natural gas have sent pricing at some hubs skyrocketing, which fits into research Bison has been publishing over the past few months.
Sandridge is cheap compared to peers, associated with value destruction despite new management, and is exposed to a huge natural gas price torque.