Pumping the US brakes
Output will rise again in 2018, but less drilling and greater capital discipline will slow growth
America's tight oil producers will add new supply in 2018, but the pace of additions will slow. Investors have been fretting over the growth-at-all-costs model, and a more tempered approach will take hold. Drilling activity rose sharply from June 2016 to June 2017; the rig count in the top four tight oil basins more than doubled. Production tends to lag a new well by about six months, so that run-up fuelled strong output growth through 2017. But the rig count crested in the summer and fell back to about 520 rigs for the rest of 2017. Unless a sudden price surge changes things quickly, the effect will be felt in early 2018. The huge backlog of drilled but uncompleted wells—the now-famous Ducs
Also in this section
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
