Some people don’t see the forest because they stare at one tree all the time. The biggest reason why US shale is going to come back from the ashes bigger and stronger is that cheap oil is over all over the world. Look at those new fields: the deep Arctic, deep water, sour oil, super heavy oil, challenging locations, … You name it. There are still wells that produce moderately priced oil but the new stuff is on the pricey side. And among the pricey crudes shale is on the cheaper side. Those changes often take many years or more than a decade to filter through – this is the longterm nature of oil. But they always do. I am not worried about shale.
The U.S. oil industry is facing an unprecedented collapse, and as the global economy faces its worst recession since the 1930s, the industry isn’t likely to recover to pre-crash levels ever again