US shale production dull until someone starts talking shareholder payback

[Carlsbad + 19]

I'm growing tired of all the talk about US shale production and the US becoming the world's biggest producer until I start seeing investors in this boom get money back ... when is that going to happen?

[TraderTate + 186]

yeah, the shale 'revolution' part II isn't real as far as shareholders are concerned

[Rodent + 1,424]

The US is pumping over 10 million bpd now (10.270 to be exact)--certainly ahead of earlier analyst estimates. And it's not just a one-off week with a spike in production. Week after week US oil production rises. Rigs have largely plateaued--meaning companies are finding ways to do more with less. Oil prices are still not wonderfully high but still remarkably better than a year ago. The shale revolution is alive and well, even if shareholders don't get to join in the fun for now.

As for the biggest producer, well, Saudi Arabia produced 9.977 million bpd in January. Russia's was 10.95 million bpd. U.S. has already overtaken Saudi Arabia (courtesy of production cuts) and Russia will be next soon. While Saudi and Russia keep a lid on their production, US is steadily increasing. It's just a matter of time. 

 

 

[Seleskya + 50]

but without happy shareholders, it's not going to go anywhere

[Missy + 43]

33 minutes ago, Seleskya said:

but without happy shareholders, it's not going to go anywhere

What do you mean by, it's not going to go anywhere. What do you envision happening?

[James + 30]

All it takes is a mass exodus of shareholders to bail on shale on this shale boom is over with. Kinda hope it happens because we don’t need shale trying to spoil the oil price rallies and trying to bring back the glut. 

[TraderTate + 186]

Shale producers need to be brought now a notch, into reality. They can't have this boom on the backs of everyone else. 

[James + 30]

16 minutes ago, TraderTate said:

Shale producers need to be brought now a notch, into reality. They can't have this boom on the backs of everyone else. 

Even then, the dissipating tier-1 acreage will force them to put themselves in check. You can’t have the same production growth in tier-2/3 acreage, even this “improved” efficiency they’ve boasted about won’t count. The days of reckless shale growth are numbered, and I believe that 2018/2019 will be the last years they grow above 1mb, and regardless we’re for sure heading to a supply shortage in the next few years and I can’t wait for oil to be above 70$ a barrel again!