Don’t panic! Oil price outlook improves as US shale faces headwinds in 2018 | Arab News

LONDON: Arab News has been told that 2018 is unlikely to see a massive ramp-up in US shale production that could potentially wreck attempts by Russia, Saudi Arabia and other producers to stabilize oil prices and shrink surplus inventories.

Speaking from Denver, Colorado, senior Wood Mackenzie energy analyst Ryan Duman said there were “headwinds” for the US shale industry which would hold back production next year, reducing the danger that the oil price would head south again.

Duman said: “US shale operators who don’t have rigs or crews under contract are going to have to pay dearly because the oil services industry is overstretched right now.”

That’s because it pared back considerably during the slump — building it up again is going to take time, he said.

There were plenty of wells, but the big question was how quickly can they come on line.

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Don’t panic! Oil price outlook improves as US shale faces headwinds in 2018 | Arab News.

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