OilPrice: American shale producers have lost their last hopes for the revival of the industry

Depressive and negative sentiment in the US shale industry, the part of the oil industry that turned the US into the largest producer of raw materials in the world, has long been the norm. Exploration, and especially drilling and production, are declining at a catastrophic pace. This is due to the fact that inflation plays a big role in deciding on the growth of shale oil production in the United States, OilPrice experts write.

Even with prices above $100 last year, U.S. shale drillers have been cautious about boosting production. They continued to act cautiously even as the federal government begged them to increase production. Now the price fluctuates around $70 per barrel, which makes the entire shale business unprofitable, especially with regard to its development and expansion. Disappointment with forecasts of rising demand for oil in China and WTI below $70 discouraged US drillers from investing more in new production.

Investors do not want to invest in production growth. This is the key factor. Its basis is a deep recession economics USA, which the government hides from the population. However, from analysts employed in the field of big capital, these factors cannot be hidden. The decision is also influenced by the conjuncture of the environmental agenda and the lack of labor, all this literally evaporated the last hopes of shale oil producers for the development of the industry, that it will get out of the crisis and come to life.

The dying trend is so deep that this phenomenon cannot be explained only by the pernicious influence of shareholders of oil companies who are tired of their money being spent on increasing production, which ultimately led to a decrease in the cost of raw materials. The fact is that there are shale companies in the US that are not public stocks, and they are similarly reducing production and exploration, cutting off the industry at the root (in the early stages of production).

If at first (about a year ago) it was still possible to solve the problem and restart the industry, now the processes of degradation, reduction in drilling, and the outflow of workers have gone too far. Now the US oil industry is under pressure from markets, quotes, skepticism of traders, shareholders and the general crisis in America.
  • Used photos: pxhere.com
Dear reader, to leave comments on the publication, you must sign in.
  1. twice-born Offline twice-born
    twice-born (Unknown) 14 June 2023 09: 03
    So that's great! In addition, the locals at the towers will suffer less from water pollution or not suffer at all!
  2. strange guest Online strange guest
    strange guest (Strange Guest) 14 June 2023 09: 19
    The price of oil is falling - and this is only a plus for households and industry. Unfortunately, cheap oil is much more profitable for the States. The losses of oil shale workers are more than offset by the benefits of industry and households (
  3. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 14 June 2023 10: 10
    All this is nonsense.
    The sheikhs have crushed the oil shale companies at a price, they will wait a bit, and they will raise their own profit.
    As it happened many times.
    Powerful US oil and gas workers are also in the black. 70 is not 20 like it was in the 90s. And slate ..... will rise in price - they will simply open the valves in their original places.
    And inexpensive fuel has a positive effect on the Western economy. Then they stopped reporting the price of gasoline there

    And Smee has something to write about. will not be without pay
    1. boriz Offline boriz
      boriz (boriz) 15 June 2023 23: 58
      And slate ..... will rise in price - they will simply open the valves in their original places.

      It's not that simple. In the "previous places" it may either not be at all, or be much less. It all depends on when the production stops.
      This is the specificity of shale mining. Pressure is created in the well by pumping with special solutions. If oil (gas) is not immediately pumped, the pressure gradually drops, the solution goes into the surrounding rocks through cracks, which, to a large extent, they themselves created.
      So it needs to be loaded again. And these are new loans, when the old ones are not repaid due to the cessation of pumping. The shale businessman is like a cyclist, he rides while he pedals. Stopped - went bankrupt.
  4. Sergey G Offline Sergey G
    Sergey G (Sergey G) 15 June 2023 09: 52
    I see how everything is "wonderful" with the Americans, they already take 4 or even 4,5 dolyars for a haul of gasoline.