Drilling rigs in the Permian
Sustained low oil prices could kill production for years
Modest downward revisions to 2025 supply belie the longer-term damage to E&P from a weaker oil market
For some time now, $70–80/bl oil has been considered the oil market sweet spot—a price high enough for companies to continue pumping and thriving while being low enough not to damage consumers. The current trade war has prompted the North Sea benchmark Brent to fall to the low $60/bl region and the US marker WTI to around $60/bl, which is leading to a worrying reveal: that the so-called ‘goldilocks’ price was in actual fact more a minimum viable product. It has been OPEC’s mantra for years: oil price stability is needed to encourage continued investment in E&P and maintain a healthy industry. But with the group having lost patience, and Trump’s approach to trade creating fresh volatility
Also in this section
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
9 March 2026
Energy sanctions are becoming an increasingly prominent tool of US foreign policy, with the country’s growth in oil and gas production allowing it to impose pressure on rivals without jeopardising its own energy security or that of its allies, argues Matthew McManus, a visiting fellow at the National Center for Energy Analytics
6 March 2026
The March 2026 issue of Petroleum Economist is out now!
