Assessing Shale Producers’ Ability to Scale-up Activity
Medlock, Kenneth B. III
The oil production targets agreed to at the November 30, 2016, OPEC meeting have created the firmest prospect in the past two years of a meaningful oil price recovery. If WTI prices rise and stabilize in the $60/bbl range, how fast can U.S. shale producers respond? This brief addresses the question and highlights the challenges U.S. unconventional liquids producers will likely face during a scale-up. It also points out price and timing inflection points likely to broadly influence industry decision-making.