U.S. Shale Is Entering A Post-Expansionary Phase

US shale oil production has surged this year, underlining the short-cycle nature of the resource, but what goes up can come down. Shale oil production is much more responsive to price than the majority of conventional drilling and there are early indicators that recent output gains are already topping out. Such has been the jump in production that the US Energy Information Administration (EIA) now predicts total US liquids supply this year of 17.83 million b/d, more than 1 million b/d higher than it forecast for 2018 a year ago, largely as a result…