Piling the pressure on US LTO
The country’s production may struggle to return even to its pre-pandemic levels, while growing to new heights seems a distant prospect
The US light tight oil (LTO) industry has been on a heck of a ride over the past decade. Domestic crude production has more than doubled, reaching record levels and stealing substantial market share from Opec and its allies. On the other hand, the competitive threat from rampant US supply has also triggered two oil price wars. And the economic fallout from the second of these and from the Covid-19 pandemic means it will take several years for US LTO production to match the record 9.15mn bl/d set in December 2019, before industry shut-ins and the widescale collapse in drilling activity (see Figures 1 and 2). At worst, US LTO output may have peaked. Troubled industry A wall of cash from bank
Also in this section
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
