Thats the one thing conventional oil producers are at pains to deal with. They are used to yearlong, sometimes decade-long development times for their upstream sources. Reacting to market developments was always covered with oil in storage. Shale is different as development times are short and a few months of high prices are enough to put the upstream on steroids. Just keep one thing in mind – that’s not shale 2.0 you were used to dealing with – the last slump spawned shale 3.0.
Oil output in the Permian Basin is projected to hit a record as the largest U.S. shale patch leads the recovery in domestic production from its Covid-19 induced slump.