Is The Second Shale Boom Grinding To A Halt?

4 Jul 2017   Shale Oil

There are some early signs that the shale boom is once again coming to a halt, beaten back by another bear market. The oil rig count declined by 2 last week, the first decline in six months. It is too early to tell whether or not this is a trend – it is one data point, after all – but if the surging rig count starts to flatten out or even decline a bit, it would provide a huge lift to the oil market. It would also suggest that U.S. shale can’t continue to grow at such a rapid clip with oil prices below $45 per barrel. Shale is often likened as the new “swing producer,” that is, a source of supply that ramps up and down on short notice in order to balance the market. Reasonable people can debate that moniker, but if forthcoming data in the next […]

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