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
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
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
