Given the oil industry’s capital-intensive nature, and the difficulty of smaller producers to profit from operations, investors are hopeful that the long-anticipated wave of consolidations will be sparked by the Chevron-Anadarko deal.
For the United States to realize its foreign policy ambitions, domestic oil demand must be reduced.
U.S. shale is expected to account for nearly three-quarters of global supply growth over the next five years—even as it faces both short- and long-term questions about its viability.
Oil's bullish trend may only prove to be fleeting, with the possibility of another downturn later in the year.
The dramatic slimming down over the past half-decade by the oil and gas industry has led to a steep drop off in spending, exploration and final investment decisions on new projects—raising the possibility of a supply crunch in the early 2020s.
Despite a range of uncertainties looming over the oil market this year, there is a growing sense that OPEC+ might be able to succeed in balancing the market after all.
The outlook for oil prices in 2019 is highly uncertain, but the effects of low prices are starting to wear down the U.S. shale industry. Recent data from the Dallas Federal Reserve suggests a slowdown from the U.S. shale industry is already underway.
When Saudi Arabia threatens to weaponize its oil production, the U.S. cannot afford to brush off this warning by overestimating the potential of shale to cover the shortfalls.
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.