The US shale industry, gutted by nearly three years of bankruptcies, writedowns, credit downgrades and layoffs, is poised to step back from the brink, thanks to an old enemy: Opec. Abandoning a policy that sought to starve shale explorers and other high-cost drillers into submission, the Organisation of Petroleum Exporting Countries relented this week and agreed to curb output by 1.2million barrels a day. Other producing nations that aren't cartel members also signalled plans to cut back by as much as 600,000 barrels, Opec said. The deal could boost prices through at least the first half of next year, according to Chris Kettenmann, chief energy strategist at Macro Risk Advisors. The result: US shale fields could raise the amount of crude produced within four months, said Antoine Halff at Columbia University's Centre on Global Energy Policy. First to pounce should be drillers in the Permian Basin of Texas and New Mexico, home to gushers prolific enough to spur a recent land rush. If ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.