for Shale Oil Production
Behind the billions of dollars in write-downs is a substantially gloomier assumption about the long-term trajectory of the oil market.
The Dakota Access pipeline shutdown could remove 570,000 barrels per day of takeaway capacity from the Bakken shale formation.
With global demand perhaps permanently scarred from the pandemic, the U.S. oil industry may have already peaked.
Two high-profile pipeline setbacks are part of a broader story in which the winds facing the oil and gas industry are blowing in an increasingly unfavorable direction.
A tighter market could help shale bounce back, but the heady days of aggressive growth-at-all-costs drilling are long gone.
Cautious optimism is returning to the oil industry, but prices are nowhere near profitable for the domestic industry.
Oil prices have risen ahead of the next OPEC+ meeting, but OPEC-Russian coordination is far from assured.
Oil prices are starting to climb, but supply shut ins mean the pain is not yet over.
The demise of Chesapeake is a fitting bookend to the latest chapter of U.S. shale.
With demand for oil slumping worldwide, global storage could be full by June.