Fantastic, record-breaking profits are the best way to sum up the state of the global oil industry last year. But a steep peak in the development graph is always followed by a “cliff” and a decline in performance, and the US shale industry has not escaped this inevitable phenomenon. Mining companies not only expect a reduction in revenue levels, but also a reduction in production. The reasons why the shale industry is waiting for the sunset in the near future are described by the OilPrice resource.
Calls from the White House to increase oil production have largely fallen on deaf ears due, among other things, to various regulatory requirements that make expanding production a time-consuming and costly process, while producers expected to facilitate the process.
Meanwhile Baker Hughes said rig counts were down, with the number of wells involved in February marking the biggest drop in activity since June 2020. Also a record, only with the prefix “anti” .
The industry also reports (by the way, the “signals” are also sent abroad, to Europe) that it has no major plans to increase production. In fact, there have been clear clues about this for some time, and executives have noted that there is little incentive in the market to increase production (investment), even though most forecasters are skeptical. expect a tighter oil and gas supply situation later this year. .
Already now, it is safe to say that the basis for a new, even more critical and dangerous oil and gas crisis on a planetary scale is forming, as the latest season of records for the US shale industry is over forever.
