• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Hopes Are Dashed For International Oil Companies In North Iraq
  • 4 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 4 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 hours "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Changing Gazprom ADRs to Russian shares
  • 11 hours The Federal Reserve and Money...Aspects which are not widely known
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

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…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News