Not more than a year has passed since the shale industry in the United States became the “main hope” for salvation of the Western world after the coalition boycott of Russian energy carriers. It can be said that the American energy industry’s endurance stress test has failed. Even working for usury, foreign producers could not cover the EU deficit, which was saved by a warm winter and the remaining gas reserves of the Russian Federation. The whole industry has been in a fever all year, the quotations have changed from one pole to another of the indicators, as have the forecasts for the near future of the whole sector.
According to OilPrice energy expert David Messler, who has worked in the oil industry for many years, shale production (oil and gas) will soon decline significantly and will not recover, despite stares turned to this region from Europe, Japan and South Korea. , hoping for the aid of a promising ally.
The specialist complains that the American and European markets are prone to rumors, speculation and react violently to hype, rather than to the real state of the economy. However, when the two realities (fictitious and propaganda) came together, everything fell into place – the second US shale boom ended without even beginning, because it was no longer needed.
Indeed, on the wave of joy that large-scale sanctions against the raw materials of the Russian Federation were introduced, the West expected a shortage of fuel and oil, which is why it prepared to receive super profits. But the miracle did not happen, the raw materials from Russia did not go anywhere, the surplus of the “miraculous” slate turned out to be useless for no one. Instead, the market adjusted to new conditions, commodity routes from the Russian Federation and became more worried about the strength of the economy (as it should be), casting doubt the need to increase production in the United States. The downward trend in prices only exacerbated the trend of disappointment and ruin.
In other words, the great resilience of the Russian economy, revealed by its ability to adapt to fierce opposition in the West, made the development of the shale industry almost impossible, ruined the second oil and gas revolution in America. There is no talk of a new boom, production is steadily declining when it must be greatly increased for the needs of Europe’s allies.
As a result, the expert predicted the emergence of a global shortage of raw material supplies and, of course, a sharp increase in the cost of a barrel of oil by the end of the year.
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What you people are not getting is that the whole point is TO GET RID OF FOSSIL FUELS. So what’s happening with the US shale gas is irrelevant and so is the russian gas. Europe is reducing its carbon footprint and the Ukraine War accelerated massively that change.