The spread between benchmarks Brent and WTI has widened recently, a reflection of a sharp increase in U.S. shale production this year at a time when OPEC is cutting back.
Ed Hirs, an energy economist from the University of Houston, talks to The Fuse about the dangers of oil supply disruptions and OPEC's impact on shale.
The current stability is relatively rare for the oil market, which is prone to rampant volatility for numerous reasons. When the market eventually breaks out, it could do so aggressively.
The potential acceleration of decline rates at some shale wells is an ominous sign that the drilling bonanza in West Texas should not be taken for granted.
Independent producers are struggling to hit output targets at current price levels while the majors are focusing on becoming more efficient.
Risks for companies operating in Argentina have fallen considerably in recent years, but the political environment could throw a wrench in energy development at any time. The mid-term elections in October are the next big flashpoint.
Despite strong gains in shale production in 2017, the rebound does not necessarily mean the industry is healthy. A new report finds that even some of the largest shale players won’t be cash flow positive until 2020.
OPEC’s gamble to cut production to shore up prices has not worked out the way members thought it would, but the cartel cannot be faulted for not trying. The inadequacy of its policy in the first part of 2017 means that OPEC will do whatever it takes during the second half of the year to achieve its goals.
Faltering U.S. gas production in 2016 was an aberration, a side effect of both low prices and the collapse in the oil market, which cut the output of associated gas. In the next five years, U.S. gas production will make up 40% of global supply growth.
Electricity and renewable investments fell modestly last year, but the lower price environment over the past three years has taken a particular toll on upstream oil and gas outlays.