Opec cuts, shale mends
Is American tight oil going to ruin the price recovery?
When Opec's ministers emerged, deal in hand, from their November meeting in Vienna you could almost hear the champagne being uncorked half a world away in Texas. If it brings a lasting revival in prices, the deal will underpin new growth in US shale supply after two punishing years of austerity. Oil in the $50s will unleash a wave of new tight oil spending. A rising oil price won't buoy all shale producers equally. The recovery in 2017 will look a lot like it did in the second half of 2016. That is, the Permian in west Texas will suck up most investment, yielding more oil. The Eagle Ford and Bakken will be slower to recover, needing prices north of $60 a barrel to grow. Basins outside the Pe
Also in this section
2 April 2025
The often-hidden yet powerful hand maintains supply chain linkages and global flows amid disruptions
2 April 2025
At some point it is likely that $70/bl will be quietly accepted as the producer-consumer sweet spot for a US administration having to balance both sides of the ledger
1 April 2025
There is method to the US president’s apparent madness, and those seeking to understand need look no further than their local bookshop
1 April 2025
Strong economic growth targets are encouraging for the country’s energy demand growth, even if meeting those goals might be a tall order
