The Magic Number for a New Shale Surge Is $60 a Barrel, JPMorgan Says
- Permian tour finds producers reluctant to revise spending now
- Couple of quarters above that price could loosen the reins
Can Shale Drilling Go Global?
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For America’s shale drillers, the tipping point to boost production looks to be $60 a barrel.
It’ll take a sustained run above that price in New York before drillers rethink their spending plans for 2018, according to JPMorgan Chase & Co. Until then, activity looks to be “range-bound," said analysts led by Arun Jayaram in a Wednesday research note detailing their talks with operators in the Permian shale basin in Texas and New Mexico.