Shale boom in U.S. ended

As it was stated by oil analyst at PVM Oil Associates Stephen Brennock, a shale boom in the United States came to its end. Brennock told the Rigzone resource about some factors behind this event.

Firstly, he mentioned a lack of capital investment in production growth that had existed in the past. Besides that, the oil industry was pushed to the end of the shale boom by rising inflation of service costs, as well as by reduction of top-tier acreage, resulting in lesser return on the money spent.

At the same time, when asked a question about the possible end to the shale boom in the U.S., Fitch Solutions Country Risk & Industry Research sent a report to Rigzone, in which it was noted that this U.S. industry was “growing but slowing”.

As it was said in the report, the U.S. would account for the major part of non-OPEC+ supply growth. At the same time, the organization forecasts a slowdown in growth from 5.5% in 2022, to 4.8 percent in the current year, while the growth is still expected to remain strong.

Chetan Sharma, a Senior Associate at Enverus Intelligence Research (EIR), also commented on the issue. As it was stated by Sharma, many forecasters, including the EIR specialists, were surprised by the slow pace of supply growth in the U.S. through 2022. They link it to the degradation.