Analysis suggests that the U.S. could face a supply squeeze in the short to mid-term that will likely drive up commodity prices.

As global economies gradually emerge from the Covid-19-induced contraction, the U.S. Energy Information Administration (EIA) estimates an increase in global oil demand of 6% in 2021. The supply side, on the other hand, shows a different trend. TGS analysis indicates a dramatic decrease in rig count, well shut-ins, high decline rates in unconventional wells and other challenges associated with shale production point to lower U.S. oil output in the near-term.