Is Lower 48 oil and gas supply still not responding to higher prices?

We address the topic on everyone’s mind: how much Lower 48 growth should we expect as prices continue to remain high? Supply is already growing, but not as fast as many expected in some cases. In the near-term, fixed budgets and severe oilfield service (OFS) sector constraints moderate growth. Beyond that, future drilling spend will be balanced against shareholder returns and debt targets. Still, we think the industry can practice capital discipline and grow production, especially with elevated prices.