Around 41pc of forecast US E&P production has so far been hedged in 2021
Conservative hedging bruises US shale
Operator balance sheets are benefitting from the uplift in oil prices, but many could miss out as the bulk of their production is locked into more muted pricing
Results season painted a cheerier picture for much of the US shale patch in Q1, with revenues rebounding as WTI comfortably surpassed $50/bl. But while many operators boasted stronger cash flow and debt reduction during the quarter, cautious hedging could see the sector miss out on billions of dollars. Around 41pc of forecast US E&P production has so far been hedged in 2021, estimates consultancy Rystad Energy. And the average floor price of $42/bl is significantly less than the $65/bl WTI average in April. Houston-based consultancy Opportune surveyed the 30 largest public oil and gas companies operating across the US shale patch. Of the 27 that disclosed hedging, average crude swap pric
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
