{"id":61938,"date":"2022-02-17T10:01:41","date_gmt":"2022-02-17T15:01:41","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61938"},"modified":"2022-02-17T10:01:41","modified_gmt":"2022-02-17T15:01:41","slug":"why-isnt-u-s-shale-production-soaring","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61938","title":{"rendered":"Why Isn\u2019t U.S. Shale Production Soaring?"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Why-Isnt-US-Shale-Production-Soaring.html?fbclid=IwAR32R7wJHYlnAqzArmXkGgScYwm08w_14EgVF0GxJLXMRJ-lfl6ZZ9WQyhE\">Why Isn\u2019t U.S. Shale Production Soaring?<\/a><\/h3>\n<div id=\"key_points\" class=\"wysiwyg clear\">\n<ul>\n<li aria-level=\"1\">With oil prices threatening to break $100 this year, many observers are confused by the lack of a U.S. shale boom.<\/li>\n<li aria-level=\"1\">The major reason that U.S. shale companies are reluctant to boost production at all costs is that they need to keep shareholders happy first and foremost.<\/li>\n<li aria-level=\"1\">Other issues include cost inflation and the shrinking number of sweet spots for them to tap.<\/li>\n<\/ul>\n<\/div>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2022-02-16_wguhakf3ps.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2022-02-16_wguhakf3ps.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2022-02-16_wguhakf3ps.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>A lot of news has been coming lately from the U.S. shale patch. Output in the Permian has\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Permian-Oil-Output-Hits-Record.html\">broken<\/a>\u00a0records for two months in a row. The Energy Information Administration has<a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/US-Oil-Output-Could-Hit-Record-In-2023-EIA.html\">\u00a0forecast<\/a>\u00a0that the U.S. total could also break a record this year, thanks to higher prices.<\/p>\n<p>But is this news good enough?<\/p>\n<p>The rig count is on the rise; there is no question about it. Output is also on the rise. Yet, according to industry executives, this does not necessarily equate to a return to business as normal. On the contrary, it seems that most of the industry is determined to stick to its financial discipline and keep returning cash to shareholders instead of boosting production.<\/p>\n<p>In an<a href=\"https:\/\/www.ft.com\/content\/8b9a2497-b22e-4d0b-a2c1-e9f6236917aa\" target=\"_blank\" rel=\"noopener\">\u00a0interview<\/a>\u00a0with the Financial Times, the chief executive of Devon Energy said that shareholders are, on the whole, still skeptical about production increases, and companies are heeding this sentiment.<\/p>\n<p>\u201cIn the back of everyone\u2019s minds is, \u2018When is it going to be [production] growth?\u2009.\u2009.\u2009.\u2009We have investors saying \u2018My gosh, if not now, when?\u2019\u201d Rick Muncrief told the Financial Times. \u201cBut for every one saying that, there\u2019s at least one other if not two others waiting to say, \u2018Gotcha! We knew that discipline would be shortlived.\u2019 We have learned our lesson,\u201d he added.<\/p>\n<div id=\"div-gpt-ad-1555424664620-0\" class=\"mobile-only\">\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Why Isn\u2019t U.S. Shale Production Soaring? With oil prices threatening to break $100 this year, many observers are confused by the lack of a U.S. shale boom. The major reason that U.S. shale companies are reluctant to boost production at all costs is that they need to keep shareholders happy first and foremost. Other issues [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[13719,5332,723,1462,827,846],"class_list":["post-61938","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-irina-slav","tag-oilprice-com","tag-shale-oil","tag-shale-oil-production","tag-united-states","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61938"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61938\/revisions"}],"predecessor-version":[{"id":61939,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61938\/revisions\/61939"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}