US operators are unlikely to rapidly raise output
Caution reigns in US shale
Even amid climbing oil prices and strong market backwardation, most US shale independents show little scope or intent to raise output in the short term
“We are not going to change our growth rate, whether oil is at $100/bl or $150/bl”, says Scott Sheffield, CEO of Texan independent Pioneer Natural Resources. Similarly, Houston-based independent Marathon Oil forecasts flat production in 2022 and admitted it is “not allocating any production growth capital in 2022”. Mike Henderson, executive vice-president of operations at Marathon, adds “I want to make clear that, should commodity prices continue to surprise to the upside, we will remain disciplined and have no plans to allocate production growth capital.” Some firms are even warning of production declines despite WTI breaching $90/bl in February and rapidly heading towards $130/bl in March.
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
