No game changer for shale yet

摘要

US light sweet marker WTI’s return above $50/bl is unlikely to prompt US produc-ers to reverse their fscal and operational discipline pledges just yet. Many producers drastically cut costs, spending and production last year fol-lowing steep oil price falls and an exodus of investor interest that swept through the industry with the arrival of Covid-19. Companies repeated a promise on their earnings calls of less production growth, even if crude prices rebounded, and more free cash fow directed back at investors. Oil drilling activity began to pick up late last year on more optimistic outlooks for a demand rebound in 2021 as vaccines are rolled out. A decline in the inven-tory of drilled-but-uncompleted shale wells picked up pace in October-November, along with higher prices, EIA data show. And the number of hydraulic fracturing crews at work rose by 2-3pc in December, consultancy Tudor Pickering Holt says.