Shale Output Hasn’t Grown This Fast Since Oil Was at $100

from The Wall Street Journal,

In closely watched report, IEA warns U.S. crude output is set to outpace demand in 2018.

U.S. shale companies are churning out crude oil at a record pace that could overwhelm global demand and reverse the oil market’s fragile recovery, a top energy-market observer said Tuesday. U.S. shale production is growing faster in 2018 than it did even during the boom years of $100 a barrel oil prices from 2011 to 2014, said the International Energy Agency in its closely watched monthly report. The difference this time: Oil prices are about 40% lower. The situation is “reminiscent of the first wave of U.S. shale growth,” when a flood of American oil built up a global glut and sent prices crashing over four years ago, said the Paris-based IEA, which advises governments and corporations on energy trends.

Oil prices fell after the report’s release in Europe. Brent, the international benchmark was down 0.69% at $62.17, while U.S. prices were down 1.35% at $58.51. Shale producers “cut costs dramatically” during the oil-industry downturn, the IEA said.

More From The Wall Street Journal (subscription required):

365 Days Page
Comment ( 0 )
Leave a Reply