Summary

• Despite higher crude prices, large producers are maintaining capital discipline and mostly growing volumes marginally through operational efficiency.
• Small, private producers are beginning to add rigs in response to the stronger oil price backdrop, with limited public companies increasing activity.
• A stronger U.S. energy production outlook into 2027 is broadly beneficial for midstream companies, complementing natural gas demand tailwinds.

By Kyle Richards

Elevated crude prices and a stronger macro backdrop have set expectations for record U.S. oil and gas production next year. Still, large producers have remained disciplined and are so far not materially increasing production. This note