• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 12 hours America's pandemic dead deserve accountability after Birx disclosure
  • 1 hour Fukushima
  • 3 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 16 mins CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 8 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 14 mins U.S. Presidential Elections Status - Electoral Votes
  • 4 days U.S. and Chinese investors to buy Saudi pipelines , $10 Billion deal.
  • 5 hours New Chinese Coal Plants Equal All those in U.S.A
  • 2 days Does .001 of Atmosphere Control Earth's Climate?!
  • 1 day Oh the Dems!!! They cheer for helping people while stabbing them in the back!!! Enbridge asks Canadian government to support oil pipeline in dispute with Michigan
  • 2 days The coming Cyber Attack
  • 3 days NG spot prices hit triple digits for weekend delivery
  • 4 days Create a new law "Postericide" to prosecute and imprison Climate Change "Deniers"
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Shale Production Won't Bounce Back Until 2021

It could take a year before U.S. shale production starts to rise again, the chief executive of Precision Drilling Kevin Neveu told Bloomberg.

This could happen even if a hypothetical second wave of Covid-19 infections has a milder effect on the U.S. economy than the first one, and even if the economy rebounds, Neveu noted. However, it is U.S. shale that will lead the recovery in the wider oil industry, he also said.

“They’re [shale oil producers] taking it on the chin right now, and certainly production is slowing down and activity is slowing down, but it’s so quick and so easy to get that production flowing again that I think it will be one of the first places the E&P companies go,” Neveu told Bloomberg.

This is what has happened before when supply has tightened and prices have risen, during the last oil price crisis in 2014-2016. Chances are that it will happen again. When it will happen remains the open question.

“Getting back to 800 rigs in the U.S. is plausible,” according to Neveu. “If oil prices were in the US$60 to US$70 range, it could back to where it was pre COVID-19 and pre-Russia-Saudi price war.”

For oil prices to get back to pre-crisis levels we would need to see significantly improved demand and lower supply. For now, there is a better chance for the latter than the former, and this is without factoring in a second wave of Covid-19 infections. This is simply because a lot is being done to shrink supply, yet there is little that can be done to stimulate demand.

The number of active rigs in the U.S. last week was 318, Baker Hughes reported last Friday. That’s down by 21 rigs from the previous weeks and 665 rigs lower than this time last year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News