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
17 May 2024
The latest drought crisis is passing, but longer-term solutions are in motion, explains Panama Canal Authority Administrator Ricaurte Vasquez Morales
16 May 2024
Flat oil growth in 2024 highlights mounting industry problems
15 May 2024
Five years ago, Uzbekistan turned to a private company called Saneg to reverse the fortunes of its oil industry. Results so far are encouraging, and according to CEO Tulkin Yusupov, further progress is on the way
14 May 2024
But there is still plenty of appetite for the country’s LNG in the Asia-Pacific region