Some observers have been surprised by the stubbornly slow response of US shale production to WTI’s ascent towards $80/bbl. Sector consolidation, 2021 hedging losses and an ongoing imperative to show financial discipline have been widely noted before. But now supply-chain bottlenecks and cost inflation are also afflicting the shale sector, just as they are the broader economy.
With David Fyfe, Chief Economist for Argus Media.
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