Rystad Energy analysis shows that U.S. shale producers are prioritizing capital discipline over growth, and Trump administration policies are unlikely to significantly change this trend.
Although corporate executives in the shale industry may be encouraged by the supportive rhetoric of President-elect Donald Trump and his incoming administration, a potential crude oil oversupply and a stagnation in well productivity mean they are less likely to boost drilling budgets. Operators are likely to cut back on Lower 48 drilling if prices stay below $70 per barrel.
However, an important caveat here is that the 61 volumetric-equivalent between oil and dry gas means that gas volumes, which already have a more optimistic medium-term price outlook than oil, average higher current output in oil-equivalent terms than oil and are on track to grow by 1.72 million boepd through 2027. NGLs have the highest compounded annual growth rate CAGR among hydrocarbons, of 3.2% between 2024-2027, bringing an additional 625,000 boepd.
Trump Administration Energy Policy Rystad Energy Capital Discipline Well Productivity Permian Basin Oil Prices Hydrocarbon Production Investment
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Shale Industry Embraces Discipline Over 'Drill, Baby, Drill'The American shale industry is prioritizing shareholder returns and financial stability over aggressive production growth, even with a second Trump presidency. Consolidation and market shifts have led to a more disciplined approach, focusing on efficiency and profitability.
Read more »
Intel Spin-Out Venture Capital Arm, Intel CapitalIntel is separating its venture capital arm, Intel Capital, into a standalone fund to attract new investors. While Intel will remain an anchor investor, the move aims to provide Intel Capital with greater autonomy and access to capital for expansion. Intel Capital has a strong track record, having invested over $20 billion and generating over $170 billion in market value in the past decade.
Read more »
The American Shale Patch Is All About Depletion NowGoehring & Rozencwajg U.S. shale production peaked in late 2023 and is now declining, with geological depletion rather than market dynamics posing the biggest challenge.
Read more »
Can This Huge Oil Discovery Revive The Bakken Oil BoomU.S. shale can still surprise with undiscovered resources, even as more and more reports emerge suggesting that prime acreage in the shale patch is running out.
Read more »
Donald Trump transfers £3 billion of Trump Media shares to trustThe US president-elect transferred all his shares into a revocable trust, according to a regulatory filing.
Read more »
Mary Trump Recalls Bizarre Christmas Gifts From Donald and Ivana TrumpMary Trump, niece of former President Donald Trump, shared humorous anecdotes about her childhood Christmases with the Trump family, particularly highlighting the unusual and often unwanted presents she received from Donald and Ivana Trump.
Read more »