Lack of drilling activity in the US is stalling full production recovery
US shale upsurge put on hold
Domestic production has gradually crept up since the worst of the pandemic, but significant growth is unlikely to take place before 2023
The financial discipline of the US light-tight oil (LTO) industry has been impressive since the industry suffered a wave of bankruptcies and near-death experiences in the early days of the Covid-19 pandemic. US LTO production has begun to rise since bottoming out early this year, but this is not due to a major revival in drilling activity, despite the price of North American crude marker WTI rebounding in recent months into the $50-70/bl range—the kind of prices that powered the 2017-2019 output surge following Saudis Arabia’s failed 2014-16 oil price war (see Fig.1). At present, US LTO production is being pushed higher mainly by substantial productivity gains and completions of drilled-but
Also in this section
1 April 2025
There is method to the US president’s apparent madness, and those seeking to understand need look no further than their local bookshop
1 April 2025
Strong economic growth targets are encouraging for the country’s energy demand growth, even if meeting those goals might be a tall order
28 March 2025
The Central Asian country is positioning itself as a low-carbon leader, but antiquated infrastructure and a dependence on Russia are holding it back
28 March 2025
MCEDD 2025 took place in Madrid this week with record attendance and a wide-ranging programme, reflecting the deepwater sector’s renewed momentum, strategic focus and accelerating technological innovation.
