U.S. Shale Production Growing At An Unprecedented Pace

 

The oil markets have long expected that U.S. shale production would rebound once oil prices started to rise. But the comeback of shale could be much faster and stronger than many once anticipated.

There are a few reasons for this. First, the industry is leaner than it once was, with some of the least efficient companies forced out of the market and the consolidated sector is now moving quickly with oil prices stabilized in the $50s per barrel range. Second, oil drillers have a lot more experience in shale than they did years ago. Improved drilling techniques, which include longer laterals, more wells per wellpad and stronger fracking processes are yielding more oil per rig and per well. Third, instead of drilling everywhere, companies are focusing on the best spots this time around. Finally, it isn’t just the small companies drilling in U.S. shale – the oil majors are increasingly getting into the shale game. Continue reading