Lack of drilling activity in the US is stalling full production recovery
US shale upsurge put on hold
Domestic production has gradually crept up since the worst of the pandemic, but significant growth is unlikely to take place before 2023
The financial discipline of the US light-tight oil (LTO) industry has been impressive since the industry suffered a wave of bankruptcies and near-death experiences in the early days of the Covid-19 pandemic. US LTO production has begun to rise since bottoming out early this year, but this is not due to a major revival in drilling activity, despite the price of North American crude marker WTI rebounding in recent months into the $50-70/bl range—the kind of prices that powered the 2017-2019 output surge following Saudis Arabia’s failed 2014-16 oil price war (see Fig.1). At present, US LTO production is being pushed higher mainly by substantial productivity gains and completions of drilled-but
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
