Shale Oil Recovery Seen Taking Years After Decade of Excess
- Industry won’t return to production highs until at least 2023
- Even with prices rising, barriers exist to regaining growth
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As oil prices tick up to $40 a barrel following a pandemic-induced plunge, there’s a sense the shale industry is snapping back to life with Continental Resources Inc., EOG Resources Inc. and Parsley Energy Inc. all saying they’re restarting closed wells.
But top industry forecasters are painting a far darker picture. The reopenings, they say, will do little to bring new growth to an industry being increasingly starved of cash by Wall Street after a decade of excess. Even before the pandemic, investors were demanding companies spend no more than they earn. Now, that’s become a major barrier to future growth.