• 4 minutes WTI Heading for $60
  • 6 minutes OPEC Builds Case For Oil Supply Cut
  • 15 minutes Major News---Bigger Picture
  • 12 hours Starbucks slashing its corporate workforce
  • 3 hours Your idea of oil/gas prices next ten years
  • 6 hours Plastic Myth-Busters
  • 2 mins Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
  • 5 hours Could EVs Become Cheaper than ICE Cars by 2023?
  • 14 hours Here We Go Again: EU Will Hit Back If U.S. Imposes Car Tariffs
  • 10 hours what's up with NG?
  • 1 day Solid-State Batteries At Least a Decade Away From Mass Adoption
  • 15 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 17 mins Soybean sale to China down 94%
  • 2 days Big Brother Is Watching You: Chinese ‘Gait Recognition’ Tech IDs People By How They Walk
  • 11 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 10 hours Pros and Cons of Coal

Breaking News:

Crude Build Halts Oil Price Recovery

Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

U.S. Shale Is Entering A Post-Expansionary Phase

Rig

US shale oil production has surged this year, underlining the short-cycle nature of the resource, but what goes up can come down. Shale oil production is much more responsive to price than the majority of conventional drilling and there are early indicators that recent output gains are already topping out.

Such has been the jump in production that the US Energy Information Administration (EIA) now predicts total US liquids supply this year of 17.83 million b/d, more than 1 million b/d higher than it forecast for 2018 a year ago, largely as a result of increased shale oil drilling.

The jump in US output, higher production from Saudi Arabia and Russia, Washington’s granting of sanctions waivers to key importers of Iranian crude and an increasingly gloomy economic outlook, have all served to take the heat out of the oil market.

The result has been the liquidation of long positions by hedge funds and traders, a drop in oil prices, and a softening of the market’s backwardated structure.

However, while US oil production may now be quicker to take advantage of high returns, that same short-cycle responsiveness also works in the opposite direction.

Coming in from the cold

Prior to the late-2000s, the oil majors at least saw the future as being offshore in ever deeper water and harsher environments. This would require big capital, long-lead times and expertise only they possessed.

The prospect of the marginal barrel taking around…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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