Tortoise’s Rob Thummel in S&P Global

OPEC+ breakdown could cause US shale output to decline

  • Smaller shale operators most at risk
  • Output could drop 3.2 million b/d in worst-case scenario
  • Producers may start cutting capex

Houston — The breakdown in OPEC+ negotiations for deeper output cuts in response to reduced oil demand stemming from the COVID-19 virus could send push oil prices below $40/b, causing US shale oil production to decline later in the year, analysts said Friday.

Read more here: https://www.spglobal.com/platts/en/market-insights/latest-news/oil/030620-opec-breakdown-could-cause-us-shale-output-to-decline

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