OPEC ‘Capitulation’ Leaves Obstacles for U.S. Shale Drillers

  • U.S. oil prices and shale company shares rise another day
  • Roughnecks in Midland aren’t popping champagne corks yet

Total production from the three biggest U.S. shale oil plays –- the Permian and Eagle Ford in Texas and the Bakken in North Dakota –- may rise by 30,000 barrels a day next year if explorers can set their budgets with $50 crude.

Photographer: Matt Nager/Bloomberg

OPEC finally blinked in its two-year price war with U.S. oil producers. Whether that translates into a financial victory for the American shale industry remains to be seen.

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