U.S. shale oil production will expand at a “modest rate” over the next 18 months even as prices touch multiyear highs, according to BloombergNEF, leaving OPEC in a powerful position as the world cries out for more barrels.
Producers are using cash flow to pay down debt and reward shareholders rather than invest in new drilling, BNEF said in a report published Wednesday. Yet demand for energy is rising around the world. U.S. crude futures reached a seven-year high this week after OPEC and its allies declined to alter their supply agreement to raise output.
