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Oil’s Sudden Rebound Is Exposing the Achilles’ Heel of Shale

  • Steep drops in output from shale gushers require more drilling
  • Most of U.S. supply loss to stem from shale-well declines: IHS
Bloomberg business news
OPEC+ Countries 'Rapidly' Implementing Supply Cuts, Barkindo Says

Oil prices have surged more than 75% in the U.S. this month. But don’t expect a quick rebound in supply from shale explorers.

The quick turnaround in oil markets is exposing the shale industry’s big weak spot: Lightning-fast production declines. Shale gushers turn to trickles so quickly that explorers must constantly drill new locations to sustain output.