Shale Oil

The US shale sector is undergoing a significant wave of M&A, which is expected to reshape the landscape of oil production and exports in the long term.

The US shale industry is entering a promising phase marked by rising production efficiency, significant growth in key regions like Lea County, and groundbreaking innovations in methane conversion.

US energy major is set to divest a collection of conventional oil assets in the Permian Basin, with the sale potentially generating around $1B.

Shale oil output is expected to rise in 2025 with significant implications for global markets considering the ban on Russian oil by the West, and sanctions against Iran and Venezuela, and ongoing OPEC+ production cut.

In recent months, the US oil and gas sector has experienced a surge in merger and acquisition activity, with the potential to surpass last year’s figures.

Recent developments in the US shale sector reveal a dynamic shift towards enhanced efficiency and consolidation, with significant implications for the global oil market.

Occidental Petroleum has finalized its acquisition of CrownRock LP for approximately $12.4B, surpassing the initial estimated price.

In response to skyrocketing valuations and the best drilling locations being already claimed in the Permian Basin, buyers are now shifting their focus to less prominent shale basins.

The US shale oil industry experienced a notable surge in production during 2023, driven by efficiency gains despite declining well productivity and rising costs.

HSBC analysts predict that US shale oil production will continue its growth trajectory for the next 3-4 years, culminating in a peak around 2028.