The U.S. Shale Boom Is Officially Over
The days of explosive growth in U.S. shale oil production are over. American oil production is rising, but at a much slower pace than it did before the 2020 crash, and at lower rates than expected a few months ago. | The new priorities of the shale patch – capital discipline and a focus on returns to shareholders and debt repayments – have coupled with supply chain constraints and cost inflation to drag down U.S. oil production growth. ● The Biden Administration’s mixed signals to the American oil and gas industry, with frequent blaming of the sector for high gasoline prices and, most recently, a threat of more taxes, are not motivating U.S. producers, either. Many are reluctant to commit to spending more on drilling when there isn’t any medium-to-long-term vision of how the U.S. oil and gas resources could be used to boost America’s energy security and help Western allies who depend on imports.
Elena Panina | [Extract:] The US shale sector is no longer the world's main oil producer, claims one top executive. OPEC has returned as the most important factor in the oil market, bucking the trend of the past 13 years. 💬 "We are in a death spiral where the highs will go higher and the lows will go lower. Volatility will increase. The community is going to go through a difficult period," the source was quoted as saying by Оilprice.com. ● Recall that the EU and British embargo on the purchase of oil from Russia - one of the leading players in OPEC+ - is due to come into force on December 5. That would certainly make the oil price jump even higher. ● Such turn of events could play into the hands of oil production in the USA - if it were not for the very position of the White House. According to which black gold production is bad for the climate, so we should make solar panels from Chinese raw materials. (Translated with www.DeepL.com/Translator; free version)