HOUSTON (Bloomberg) --Oil prices have surged more than 75% in the U.S. this month. But don’t expect a quick rebound in supply from shale explorers.
The quick turnaround in oil markets is exposing the shale industry’s Achilles’ heel: Lightning-fast production declines. Shale gushers turn to trickles so quickly that explorers must constantly drill new locations to sustain output.
And they haven’t been doing that. Drilling activity touched an all-time U.S. low after Covid-19 lockdowns crushed global energy demand and explorers slashed spending to survive a crash that has erased tens of thousands of jobs and pushed some companies into bankruptcy.
https://www.worldoil.com//news/2020/5/22/swift-production-declines-may-keep-shale-operators-on-oil-rebound-s-sidelines
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