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WSJ: U.S. shale juggernaut shows signs of slowing down

Published 10/06/2017, 10:55 AM
© Reuters. WSJ: U.S. shale juggernaut shows signs of slowing down
  • U.S. shale producers are starting to tap the brakes on drilling for new oil amid growing technological, operational and financial hurdles, and company leaders warn that forecasts of abundant U.S. oil that can permanently meet global needs may be a myth, WSJ reports.
  • Experts say the pace of innovation that allowed shale drillers to maintain production even as prices fell appears to be slowing, and the cost of labor and services is rising in the most popular oil fields, driving up drilling expenses, according to the report; some companies also are hearing from investors who have grown tired of drillers focusing on growth over profit.
  • "Future oil production is notoriously difficult to predict... but a growing chorus of oil industry leaders, including some shale trailblazers, believes U.S. growth may peak sooner than government forecasters think," according to the WSJ report.
  • Growth already may be showing signs of peaking: The number of oil drilling rigs in the U.S. rose 6% in Q3, but that's a sharp decline compared with previous quarters in which activity rose by 20% on average.
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