DEEP DIVE in US #Shale- plenty of inventory below $40/bbl- best names are $PXD/$OXY/$CXO/$EOG/$MTDR/$MRO #OOTT

Phil Jungwirth at BMO is out with a Deep Dive on the US shale plays. The conclusions are: 

1-      There is plenty of inventory even below $40/bl mainly located in the Permian

2-      In fact there is enough inventory to hold US production flat below $40 for 10 years

3-      The Delaware is the most Capital efficient play ( see chart below). XEC/DVN/EOG/MTDR/OXY best exposed there

4-      Interestingly the top tier of Bakken ranks higher than the Delaware. MRO is most exposed.

5-      Tier 1 and 2 inventory: PXD, OXY, CVX, XOM, HES, COP, and CXO have the deepest inventory. MTDR, WPX, and XEC screen best among SMIDs

bit.ly/MasterEnergyBlog