No recovery in sight for US shale
Barrels may have returned to the market, but lack of drilling and bearish conditions will likely see production fall sharply across Q4
The US shale patch is primed for a steep production decline in the fourth quarter that will likely spill over into 2021, the result of a lack of drilling and increasingly wary producers. WTI again fell below $40/bl in late September on fears that a second global wave of Covid-19 infections could further stall economic recovery. Curtailed production from earlier in the year has now almost entirely returned to the market. But the sector’s recovery looks limited given hefty capex cuts, a focus on capital discipline and the lack of motivation that continuing low prices will engender. Well completions and frack spreads have plunged through 2020. “The current frack spread is at 89, down by c.7

Also in this section
24 July 2025
The reaction to proposed sanctions on Russian oil buyers has been muted, suggesting trader fatigue with Trump’s frequent bold and erratic threats
24 July 2025
Trump energy policies and changing consumer trends to upend oil supply and demand
24 July 2025
Despite significant crude projections over the next five years, Latin America’s largest economy could be forced to start importing unless action is taken
23 July 2025
The country’s energy minister explains in an exclusive interview how the country is taking a pragmatic and far-sighted approach to energy security and why he has great confidence in its oil sector