US tight oil turning over a new leaf?
A shale sector that emphasised returns over production growth would be a win from both shareholders and oil markets
Returns, returns, returns. Shale executives echoed each other on the latest round of quarterly calls with investors, promising wary shareholders and analysts that they're ready to start putting returns over production growth. This isn't the first time investors have heard the refrain, though. As the oil price recovered from its early 2016 lows, shale companies made a similar pledge. The days of spending beyond their means to chase loss-making output growth, executives told investors, were over. Then the animal spirits took hold again. The shale industry has spent about 50% more than it has brought in this year, while production quickly ramped up. Only a few companies have squeaked out profit
Also in this section
20 March 2025
As cash-strapped Western governments commit to substantially raising defence expenditure, a similar dynamic is playing out in Saudi Arabia’s oil and gas sector, as Saudi Aramco maintains it heavy capex push despite reduced revenues
20 March 2025
Tariffs, sanctions and trade conflicts are upending the oil market, impacting crude differentials and shipping rates and creating uncertainty
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
19 March 2025
Iran’s oil is caught in the crosshairs of support from China and Russia and US maximum pressure, with options becoming more and more limited
