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
14 April 2026
The GECF has warned it may revise its projections for demand this year downwards in light of conflict in the Middle East, although it maintains its forecasts for 2027 and onwards
13 April 2026
Petroleum Economist analysis highlights sharp shift from crude oversupply to market deficit, with Iraq and Kuwait badly affected and key producers Saudi Arabia and the UAE also seeing output sharply lower
13 April 2026
Turkmenistan is moving ahead with a modest expansion of the giant Galkynysh field to sustain gas deliveries abroad, but persistent delays to other key pipeline projects and geopolitical risks continue to constrain its export ambitions
13 April 2026
Expensive electricity has forced out swathes of energy-intensive industry and now threatens the country’s ability to attract future investment in datacentres and the digital economy
