Executive Summary
The second quarter of 2021 saw rising commodity prices across the board, with WTI and Henry Hub surpassing $70/bbl and $3.50/ mmbtu, respectively. However, the second quarter experienced a hiccup caused by the shutdown of the Colonial Pipeline in response to a ransomware attack, leading to short-term price dislocations. Overall, industry sentiment was high as a commodity price recovery seemed to be taking place. The question seems to be whether the price environment is sustainable in the near to intermediate future. In this newsletter, we examine the macroeconomic factors that have affected the industry in the second quarter and take a closer look at the Permian Basin.
