IEA: Rising oil prices have not yet triggered a rebound in U.S. shale gas

According to the Oil & Gas Journal website on May 13th, the International Energy Agency (IEA) analyzed that the rise in crude oil prices has not yet triggered a rebound in US shale oil.

Due to the short business cycle, the U.

However, although WTI prices have risen to more than US$60/barrel before the epidemic this year, the International Energy Agency predicts that US shale oil will only rise slightly.

IEA said: "Since the 2014-2015 price plunge, more and more U.

In the fourth quarter of 2020, when the company set 2021 capital and production targets, oil prices were on average $15/barrel (35%) lower than in the first quarter of 2021.

Wang Lei is an excerpt from Oil & Gas Journal

The original text is as follows:

IEA: Higher prices yet to trigger rebound in US shale

Higher crude oil prices have yet to trigger rebound in US shale oil, according to International Energy Agency (IEA) analysis.

The US shale oil industry has become renowned for its ability to respond swiftly to price signals, thanks to the short-cycle nature of operations.

However, this year, despite WTI prices having risen to pre-pandemic levels above $60/bbl, IEA forecasts US shale oil to increase only modestly and reach a 2021 exit rate of 7.

"Since the 2014-15 price crash, more and more of the US shale operators have focused on capital discipline and rewarding shareholders ahead of production growth ambitions.

In fourth-quarter 2020, when companies set 2021 capital and production targets, oil prices averaged $15/bbl (35%) lower than first-quarter 2021.