Opec cuts, shale mends
Is American tight oil going to ruin the price recovery?
When Opec's ministers emerged, deal in hand, from their November meeting in Vienna you could almost hear the champagne being uncorked half a world away in Texas. If it brings a lasting revival in prices, the deal will underpin new growth in US shale supply after two punishing years of austerity. Oil in the $50s will unleash a wave of new tight oil spending. A rising oil price won't buoy all shale producers equally. The recovery in 2017 will look a lot like it did in the second half of 2016. That is, the Permian in west Texas will suck up most investment, yielding more oil. The Eagle Ford and Bakken will be slower to recover, needing prices north of $60 a barrel to grow. Basins outside the Pe
Also in this section
31 October 2024
The country is nearing a tipping point as its domestic needs continue to grow
30 October 2024
Attempts to control domestic fuel prices could threaten supply
29 October 2024
After some delay, the much-heralded sale of oil and gas companies’ mature upstream assets in sub-Saharan Africa has gained fresh momentum, with a clutch of deals reaching completion
27 October 2024
Extreme weather conditions are compounding upstream challenges and pressuring governments across the region
