I mentioned a lot of times here, you can't just look at US inventory only, crude market is world wide, and crude is in the middle of multi year recovery. See SLB ceo's comments inside: (谈股论金)  618次阅读

作者: longterminvestor , 发表于: 2018-05-10 (2389天前) @ 雅歌

On the supply side, after three consecutive years of dramatic underinvestment in global E&P activity, the worldwide production base has [Technical Difficulty] the expected signs of weakening with noticeable year-over-year production declines appearing in several countries such as Angola, Norway, Mexico, Malaysia, China and Indonesia. This trend is expected to spread and accelerate and impact as the level of new [Technical Difficulty] from prior investments continues to fade into 2019.
With Libya and Nigeria producing at near-full capacity, Venezuelan production in free fall, and the potential of new sanctions against Iran, the only major sources of short-term supply growth to address the global production decline and strong worldwide demand growth are Saudi Arabia, Kuwait, UAE, Russia, and the US shale land shale oil operators. At present, the collective spare capacity of the three core OPEC countries is only in the range of 3 million barrels per day.
There are also emerging questions around whether the very bullish production growth outlook for US share oil can be fully met, as the industry is coming to face challenges linked to well to well interference as more infill training takes place. Lower production per well as drilling increasingly steps out from tier 1 acreage as operators look to overcome growing infrastructure constraints and as refineries approach current processing capacity for light oil.
In spite of these clear signs of a tightening oil market, there has been no upwards revision to 2018 E&P spending with North American and International upstream investments still expected to grow in the range of 20% and 5% respectively. Based on these investment levels and the current supplies, we believe it is increasingly likely that the industry will face growing supply challenges over the coming years and that a significant increase in global E&P investment will be required to minimize the impending production deficit.
https://www.msn.com/en-us/money/news/schlumberger-limiteds-slb-ceo-paal-kibsgaard-on-q1-2018-results-earnings-call-tran/ar-AAw7s27