Shale producers are continuously improving their drilling and fracturing technology, increasing their efficiency and allowing them to break even at oil prices as low as $40/B, depending on the field. They are also already competitive with many conventional fields. As a result, US oil output has been surprisingly strong in February and rapidly filling available storage tanks. In this piece we further examine how conventional producers can compete in this every changing market.
This article written by Dubai-based partners Bernhard Hartmann and Saji Sam appeared as an op-ed published in Middle East Economic Survey (MEES), the subscription-only weekly publication on oil and gas news.