Tact and Discipline

WSJ: Second Wave of U.S. Shale Revolution Is Coming, Says IEA

Not high on the Texas oilman’s trait list.   Don’t give away the store fellas.


Shale was largely behind the glut of American oil that flooded the market more than four years ago, leading oil prices to fall to $30 a barrel from more than a $100 a barrel in late 2014.

U.S. shale production in 2018 grew faster than it did during the boom years of 2011 to 2014, the IEA said last year.

The U.S. last year surpassed Russia and Saudi Arabia to become the world’s largest producer of crude oil, with output currently hovering around 12 million barrels a day.

U.S. crude production is expected to rise to 13.7 million barrels a day by the end of its five-year forecast period, the IEA said Monday.

“Annual gains will boost the U.S. to levels never seen in any country, in excess of maximum capacity in both Russia and Saudi Arabia,” the report noted.

3 thoughts on “Tact and Discipline

  1. There are two main criticisms of reports like this. One is that the child wells produce much less oil( some due to tight spacing).The loss of production from child wells may stop growth bc the amount produced from new wells will just replace what is being lost.A second criticism is that the quality of oil, heavy vs light crude, matters bc the higher distillates can’t be made in US refineries. On the second point I am told by a Houston chemical engineer and a geophysicist that they can. I am unsure on both points. Any thoughts if this will affect TPL?


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