Spending collapse might cause U.S. production to falter

摘要

The downturn of 2015 has established that shale oil economics in the Lower 48 are solid enough to survive at $50 oil prices. But behind that story is that E&P spending is continuing to be eviscerated in the U.S. As one analyst put it, 20% cutbacks have lost their shock value. But by summer another surprise might be in store as companies cut what seemed in January to be invulnerable: production. Ultimately, lower production will help balance out the oversup-ply depressing prices. Until then, shale success largely depends on where operators drill.