US Shale Growth in Sight But Not Without Obstacles

Rising costs, supply chain woes and inflation challenges grow amid drive to boost U.S. shale production, analysts say.

US-shale-Permian-Basin

The U.S. Energy Information Administration forecasts oil production in the Permian Basin will rise by 70,000 bbl/d to about 5.2 MMbbl/d in April. (Source: Mike Irvin/Shutterstock.com)

Can U.S. shale players accelerate activity in North America to help meet global oil demand amid a supply crunch as energy prices surge?

That’s the question James West, senior managing director and partner at Evercore ISI, is being asked often lately. Activity in shale plays continues to rebound from its pandemic woes, led by the Permian Basin where the U.S. Energy Information Administration (EIA) forecasts oil production will rise by 70,000 bbl/d to about 5.2 MMbbl/d in April. However, other challenges could make it difficult for U.S. producers to replace Russian barrels and fill gaps left by some OPEC member countries.

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Velda Addison

Velda Addison is the senior editor of digital media for Hart Energy’s editorial team. She covers energy with a focus on renewables.