The US shale industry is facing a crisis due to the recent decline in oil prices, which have fallen since President Donald Trump’s tariff announcement last week. Despite a brief relief rally on Wednesday, oil prices remain below the breakeven point for profitable drilling, with WTI Crude falling 1% to $61.76 per barrel.
Industry analysts and investment banks have downgraded their oil price forecasts, citing concerns about slowing economies and global demand growth. The US shale industry fears a repeat of the COVID-19 pandemic-related crash in oil prices, which forced producers to curtail activity.
“This reminds me exactly of Covid,” said Kirk Edwards, president of Odessa, Texas-based Latigo Petroleum. “We are facing a double whammy again.” Industry executives warn that the ongoing uncertainty and risks skewed to the downside may price out profitable drilling, forcing them to cut back on activities.
Source: https://oilprice.com/Energy/Energy-General/US-Shale-Faces-Toughest-Challenge-Since-the-2020-Oil-Price-Plunge.html