The US shale oil boom is over


The days of explosive growth in US shale oil production are over. It is increasing, but at a much slower pace than before the 2020 crash and lower than expected a few months ago. So the US shale boom is officially over. OilPrice writes about this.


The new priorities of shale industry managers - capital discipline and focus on shareholder returns, debt repayment - all these factors, combined with supply chain restrictions and cost inflation, are dragging down the growth of US oil production.

Mixed signals from the Joe Biden administration to the US oil and gas industry, with the sector often being blamed for high gas prices and, more recently, the threat of higher taxes, do not motivate American producers either. Many are reluctant to spend more on drilling when there is no medium-to-long-term vision of how US oil and gas resources can be used to improve America's energy security and help import-dependent Western allies.

Oil executives, for their part, say that policy and the administration's anti-oil rhetoric, inflation, contractor delays and regulatory uncertainty are weighing on drilling and production planning.

The current state and prospects of the US oil industry contrast sharply with growth in the decade leading up to 2019. The growing influence of the OPEC cartel is currently weighing down on the industry. As the resource writes, America's energy shale industry is in a state of clinical death, which will lead to higher spending highs and lower production lows. All this will determine the overall outcome of the once booming industry.
  • Photos used: Bureau of Land Management California / flickr.com
7 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Vladimir Tuzakov (Vladimir Tuzakov) 25 November 2022 18: 20
    0
    The halt in the development of the shale oil industry may be predetermined by the impending general crisis, and lower demand for oil, while shale oil is more expensive. Another harbinger of a general crisis...
  2. In passing Offline In passing
    In passing (Galina Rožkova) 25 November 2022 18: 34
    0
    And close the door behind you.
  3. Vladimir1155 Offline Vladimir1155
    Vladimir1155 (Vladimir) 26 November 2022 10: 45
    0
    the very idea of ​​​​shale gas was initially empty, designed to carry out speculation in loans and shares rather than extract gas .... in general, a financial scam, which was required to be proven
    1. Ugens Offline Ugens
      Ugens (Victor) 26 November 2022 11: 36
      0
      Do not repeat Gazprom's propaganda, because of new technologies, gas production in the United States has increased by almost one and a half times. Gazprom does not advertise in the media, but specialized publications note that shale technologies are being used by Gazprom more and more.
      1. Vladimir1155 Offline Vladimir1155
        Vladimir1155 (Vladimir) 26 November 2022 17: 15
        0
        if we take from a low American base, then production could increase by 10 times, however, the technology of shale gas training is vicious, many wells are needed and they are quickly depleted, with Gazprom pumping out from wells with a good debit for years, it would be better to make gas from peat wood and coal, or from garbage as in the 19th century .... and if you read the article carefully, you realized that shale gas simply ended without really starting, despite the ban on supplies to Gazprom in Europe and the increased prices of shale gas at a loss
        1. Ugens Offline Ugens
          Ugens (Victor) 26 November 2022 20: 23
          0
          Nowhere in the article is there that shale gas is over)))
          Thanks to these technologies, the United States came out on top in the WORLD in terms of gas production.
          Teach materiel.
          1. Vladimir1155 Offline Vladimir1155
            Vladimir1155 (Vladimir) 26 November 2022 21: 32
            0
            Quote from ugens
            shale gas has run out)

            completely in all wells!!!!! you are right!, it is a feature of shale gas to end everywhere ..... you have to drill new wells and so on ad infinitum