---
title: 4Q 2019 Goehring & Rozencwajg Commentary
description: Leigh Goehring and Adam Rozencwajg discuss declining U.S. shale production growth, lithium-ion batteries and much more.
image: https://info.gorozen.com/hubfs/Commentaries/2018%20Q4%20Commentary/2019.Q4-Commentary.twitter.png
---

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# The Unintended Consequences of High Grading

##### *Complete the form on this page to download our Q4 2019 commentary.*

![2019.Q4 Goehring & Rozencwajg Market Commentary Cover Only](https://info.gorozen.com/hs-fs/hubfs/Commentaries/2019%20Q4%20Commentary/2019.Q4%20Goehring%20%26%20Rozencwajg%20Market%20Commentary%20Cover%20Only.png?width=220&name=2019.Q4%20Goehring%20%26%20Rozencwajg%20Market%20Commentary%20Cover%20Only.png)When oil prices fall and corporate cash flows are reduced, energy companies are forced to limit drilling activity. In deciding where to cut back, companies tend to curtail drilling their least productive wells first, and the remaining drilling activity becomes concentrated only on the most productive areas and the average productivity rises.

This process, known as **high grading**, has been widely adopted by E&P companies over the past five years and may result in serious consequences for 2020 shale oil production growth.

**With the potential for less supply, how high could oil prices go?**

Download our newest commentary, *The Unintended Consequences of High Grading,* in which we explore how these dynamics play into the supply and demand balances for 2020.

Also included in our research are extensive analyses on:

- **Lithium-ion batteries and electric vehicles**
- **The Federal Reserve’s impact on precious metals**
- **Nuclear power’s friendly carbon footprint**

## *Please fill out the form on this page to download** a copy of our Q4 2019 market commentary.*

## *Download Your Copy*

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