Reduced oil flows from the Gulf could have some upsides for more nimble US shale producers, as a projected glut in oil supplies quickly evaporates.
Analysis by JPMorgan suggests US shale companies and Canadian oil sands producers could emerge as “relative winners” as oil consumers seek alternative supplies in stable economies with secure supply chains outside the Middle East. Rystad Energy agrees there is a “theoretical upside potential in the short-term.”
But the industry, which drilled itself into bankruptcy in the 2010s, has learnt lessons the hard way and is reluctant to ramp up production only to see prices fall as US President Donald Trump eyes the midterm elections in November. The number of wells operators could bring online quickly is also limited, adds Rystad Energy.
