US shale drilling positions for survival

摘要

The COVID-19 pandemic has sent shock waves through the industry over the past couple of months. As the global economy ground to a halt, the outlook for US shale and land drilling has become much less certain. Operators and drilling contractors have scrambled to position themselves for the long haul as best as they can. In a market that was already oversupplied, energy demand has now fallen off a cliff, although the full impact will depend on the duration of the pandemic and the scale of government responses. The WTI crude oil price dropped from nearly $50/bbl at the end of February to around $20 by mid-March, eventually reaching a low point of $16.94 on 20 April. On 1 May, the WTI closed at $19.78.