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Shale Output at Risk of Peaking in 2024, Energy Aspects Says

  • World is clamoring for US supply to replace Russian barrels
  • Only a few Permian counties have prime drilling spots left
An active oil drilling rig in Midland, Texas.

An active oil drilling rig in Midland, Texas.

Photographer: Matthew Busch/Bloomberg
Updated on

Don’t expect US shale producers to ride to the rescue as the world clamors for more oil, according to Energy Aspects.

Oil output from shale basins is at risk of peaking in just two years as drillers combat rising costs, analysts including Amrita Sen wrote in a note to clients dated Tuesday. Rampant inflation is prompting at least five producers to consider the unusual step of cutting rigs at the start of the year, while none plan to boost activity substantially, according to the report.