Deflation Is Coming to America’s Shale Oil Fields
The drop in production costs is forecast to accelerate in coming months, providing welcome relief to US energy companies grappling with lower crude prices.
An oil rig drilling into the Bakken shale formation in North Dakota.
Photographer: Andrew Burton/Getty ImagesWelcome to Energy Daily, our guide to the energy and commodities markets powering the global economy. Today, Senior Reporter Kevin Crowley unpacks how US oil production costs are declining at a time of persistent inflation. To read what OPEC members are saying in Vienna, click here. For more on what Singapore is doing to stabilize its volatile power market, read this. To get this newsletter sent straight to your inbox, you can sign up here.
While inflation is persisting across the US — albeit at a slower pace — the country’s oil fields are a rare corner of the economy where prices are actually dropping.