Don’t Expect Aggressive U.S. Shale Drilling

6 Dec 2017   Shale Oil

Many analysts expect U.S. shale to put the pedal to the metal after OPEC extended the production cuts through the end of next year, but some shale executives are unmoved from their pivot towards a more cautious approach to drilling. For years, shale companies burned through cash to grow production, a strategy that promised future returns even at the cost of a sharp increase in debt. The problem was that, by and large, the vast majority of shale companies have come up short, failing to turn a profit even as production soared. They added barrels to the market at an amazing clip, but shareholders have been left disappointed. The dramatic cost cutting and lowering of breakeven prices over the past year or two offered yet another promise to investors. The days of reckless drilling were gone and the leaner and meaner shale operators would finally become profitable. Countless news […]

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