No rebound in sight for US shale

Domestic crude production will continue to be squeezed despite the modest oil price upturn and faces a long-term existential threat in the form of the Democratic manifesto

US shale curtailments are starting to ease on cautious optimism that the gradual exit from lockdowns globally will aid an oil price recovery. Independents including the likes of Devon Energy, EOG Resources, Parsley Energy and Continental Resources have all pledged to revive deferred volumes over the summer months with WTI hovering close to $40/bl.   But hopes for a swift and painless shale recovery look unlikely to be realised. The Energy Information Administration (EIA) estimates that production from the Lower 48 states has dropped by 1.55mn bl/d since the start of 2020. Producers have scrambled to cut back guidance this year against a huge global supply overhang caused by the collapsed Ope