Shale Oil

According to the EIA, production in the prolific Permian Basin in the states of New Mexico and Texas will rise by 39K b/d on the month to a record high of 5.499MM b/d in Dec.

Chief Executive Officer (CEO) Scott Sheffield of Texas-based upstream company Pioneer Natural Resources reported that production growth in the US oil industry will only reach 500K b/d this year and will be below this level next year.

Compared to the industry's previous strategy of expanding into multiple shale basins, shale producers are now looking to focus their operations on a single basin with new investments being aimed at expanding capacity in a single play, according to Wood Mackenzie.

According to the Chinese state-owned oil giant, its subsidiary Sinopec Southwest Oil & Gas Co. found an estimated 387.8B m³ in new shale gas reserves in the Jinshi 103HF exploratory well located in the Sichuan Basin.

Co-founder Amrita Sen at UK-based information services firm Energy Aspects warned that the US's shale production would reach maximum output in 2024,..

US shale producers have been emphasizing gas production recently amid the ongoing gas supply crunch in Europe due to the loss of Russian supply that is leading US producers to send volumes across the Atlantic.

As the US is expected to rely on NG as a transition fuel and is also expected to export more NG, domestic NG output is estimated to have to grow by 17B cf/d during 2023-2025, according to Wood Mackenzie's Research Director Eugene Kim.

New UK Prime Minister Liz Truss has announced a plan to a lift a moratorium on fracking in the country as her government looks to encourage more domestic oil and gas development.

The decision by many European countries to stop importing Russian NG could result in a supply/demand gap of 100-300B m³ by the end of next year.

According to the EIA's most-recent Drilling Productivity Report (DPR),...