Oh boy, we have seen this movie before. Oil prices go stratospheric, stay there for a short while kicking off all kinds of crazy expensive projects and then the oil price falls again and nobody gives two damns about the oil producer that has sunk millions or even billions. The most unloved industry on the planet has taken the lessons and now it’s way more careful with where it sinks money. Want shale to save the day? Show them some love – otherwise just get used to really high prices, cold days, and dark nights. Virtue signaling has a price – let’s use elections to make politicians pay too.
Even with crude above $100 a barrel, producers in the Permian and other U.S. shale basins are riding the brakes.