Shale unlikely to pick up the slack after Opec+ cut

摘要

US shale oil was once the bane of Opec+ producers. But now, it is in no position to fll the gap left by the group’s planned 2mn b/d output cut. Shale explorers started the year reluctant to substantially step up drilling, as shareholders demanded they focus on returns. The cash windfall they reaped on the back of higher oil prices owing to the war in Ukraine supported this stance. And then rising costs-for everything from rigs to workers to drill pipes-be-came another barrier in the way of lifting output.