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Death of shale 'exaggerated': US oil patch springs to life


Death of shale exaggerated : US oil patch springs to life
Josh Siegel
© Provided by Washington Examiner
U.S. shale oil production is ramping back up, with crude prices returning to pre-pandemic levels following recovery of demand, making drilling profitable again for the majority of companies.
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The increased activity that surged in March follows a temporary slowdown in February due to freezing weather and comes after drillers shut in a record amount of production in 2020 because travel shutdowns during the pandemic sapped consumption of oil-based fuels.
The strong rebound shows that some oil producers are refusing to resist the temptation to drill from higher prices, despite the pandemic worsening financial problems that companies faced from taking on debt to pay for growth during the shale fracking boom of the 2010s, without providing sufficient returns. ....

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Permian Oil Nears Levels Not Seen Since Pandemic


Output in the basin will reach 4.466 million barrels a day in May, the most in a year, and rig counts have touched a one-year high, according to the latest data from the Energy Information Administration.
Total American crude production peaked at more than 13 million barrels a day last year before the global pandemic crushed oil prices, forcing scores of drillers to file for bankruptcy and shutter wells.
The increase also is coming from explorers who are trying to complete the drilling and finishing of wells that were disrupted by the extreme cold weather that swept across the southern U.S. last month, while trying to meet targets for this quarter, said Artem Abramov, head of shale research for Rystad Energy. The company’s own supply estimates for next month are slightly higher than the government’s forecasts. ....

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