US shale running out of time
Financial conditions may have rallied, but the long-term survival of many firms still hangs in the balance
US shale is making a slow recovery. WTI prices have risen to above $40/bl after descending into negative territory at the tail-end of April, and producers are returning curtailments to the market. But the economic crisis is far from over. Rumbling volatility resulting from Covid-19 and fears over future lockdowns have placed a ceiling on the rebalancing of oil prices. And much of the industry faces a wall of debt maturities in 2021 that could prove unsurmountable. “While an improvement in oil prices towards $40/bl saved a significant number of E&Ps and prevented early Chapter 11 filings in June-July, the current price environment is in no way sufficient for a large number of the E&Ps
Also in this section
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
3 March 2026
The killing of Iran’s Supreme Leader Ayatollah Khamenei in US–Israeli strikes marks the most serious escalation in the region in decades and a bigger potential threat to the oil market than the start of the Russia-Ukraine crisis
