However, it isn’t clear that newfound interest in a variety of shale plays outside of West Texas will prove durable.
The industry's ability to weather current challenges will have global implications.
Shale has upended global energy markets but two questions remain unanswered: Can it be called upon to meet demand growth, and will it ever be profitable?
North Dakota is looking to manage its resources and finances prudently to keep as much damage from oil price volatility at bay and develop longer-term sustainable growth through deeper economic diversification.
One solution to reducing dependence on imports would be to build pipeline capacity connecting the Bakken area to refineries on the East Coast.
There are some signs that the U.S. shale industry is bumping up against its productivity limits, which could lead to lower-than-expected output gains or rising drilling costs.
U.S. independent shale companies are starting to step up their spending plans, eyeing a swift return to the shale patch as oil prices rise. Many have revised their capex upward, added rigs, and hedged production forward.
Rather than focus on midstream infrastructure, environmentalists should focus their energy on reducing oil demand if they want to reduce consumption.
Why has U.S. shale production proven to be so resilient to low oil prices? There are three main reasons, and they all come down to costs.
While some companies have been able to drill profitable wells with prices at current levels and the Permian remains attractive, the U.S. oil industry is not healthy with oil under $50.