All That New Shale Oil May Not Be Enough as Big Discoveries Drop
- Cheaper wells boosted output but made big projects too risky
- After price drop, companies focus on expansion, not new fields
Everything You Need to Understand Fracking
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Three years after causing an oil-price crash, the shale boom may not be enough to meet rising global demand because the industry has cut back so sharply on higher-risk mega-projects.
Discoveries of new reserves this year were the fewest on record and replaced just 11 percent of what was produced, according to a Dec. 21 report by consultant Rystad Energy. While shale wells are creating a glut now, without more investment in bigger, conventional supply, the world may see output deficits as soon as 2019, according to Canadian producer Suncor Energy Inc.