Technology takes over tight oil
As the shale business matures, its wildcatter mentality is being replaced by artificial intelligence
A WTI crude price rangebound in the $50-$60/bl band means profitability is under pressure across the US shale business, which faces far higher ongoing opex than operators of conventional resources. WTI at $100/bl can support a fragmented market of hundreds of participants but lower prices require savings to be squeezed from economies of scale and the innovative application of new technology. Disappointing returns have largely locked small players out of capital markets and the recent trend is solidly towards consolidation, with the majors becoming increasingly interested in taking stakes when they are available at the right price. Occidental, which purchased Anadarko and kept its US shale a
Also in this section
9 April 2026
The April 2026 issue of Petroleum Economist is out now!
9 April 2026
Offshore operators are working through an FID backlog as the rig market consolidates, helped by improving project economics and a renewed security drive
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
