Shale oil's new calculus
Will producers chase growth or profits?
It didn't take long for the tight oil industry's new value-over-volume mantra to face its first test. Shale executives spent much of late 2017 trying to convince investors that they had received the message on capital discipline. Growth at all cost was out and free cash-flow was in. That was before the oil price surge. From October to mid-February, prices jumped 30% to $65 a barrel, a level that makes just about any shale well look enticing. Oil's rally, then, will prove a tempting diversion on the path to a new, more sustainable, business model. Executives would be wise to resist the temptation to restart the drilling frenzy. The industry is at something of a crossroads. After proving its m
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
