The American boom in shale oil production coming to an end

Американский бум сланцевой нефтедобычи подходит к концу

A number of CEOs of the shale gas industry say that the glory days of the development of shale oil is over.If to speak about financial indicators of their activity, the results were ambiguous. Some companies exceeded their expected earnings, while in others, they fell sharply.But in addition to statements about individual successes, there were several noteworthy comments from executives about the state of the industry as a whole. The number of well-known leaders in the shale industry was a common topic of concern: shale boom coming to an end.Executive Director of Pioneer Natural Resources Scott Sheffield stated that the development of the Permian basin “will slow down significantly over the next few years.” According to him, it will be good news for OPEC. “I do not think that OPEC should be worried long term about the growth of oil shale mining in the United States,” he said.Sheffield was not alone in his assessments. CEO of Centennial Resource Development mark Pope also disappointed growth prospects. “At the September investor conference, I made a prediction that the growth of oil production in the United States annually by 2020 will amount to 700 thousand barrels per day, which at the time was considerably below the level of the common coherent assessment of experts, — the Pope said on Tuesday. — Given the additional data, I now think that by 2020, the annual growth of oil will be approximately 400 thousand barrels per day, which is below the projected level.”He noted that oil production in the US remained virtually unchanged for nine of the last ten months, and “she probably decline slightly over the next six months.”He added that this is not a temporary problem. “I believe that the pace of shale oil in the United States on an annual basis will be in 2021 and in subsequent years significantly lower than expected, Dad said. — I will leave the other discussion about what this means for global oil markets.”

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