fbpx

Oil Prices Are Up, but Frackers Stay on the Sidelines—for Now

Oil Prices Are Up, but Frackers Stay on the Sidelines—for Now

Oil’s recent rise above $60 a barrel will test the willpower of shale companies that pledged to slow drilling and repair balance sheets battered by th

Watch live: Donald Trump impeachment trial in Senate
Behind Tom Cruise’s apparent outburst, Covid-era anxieties and power imbalances
Moderna to Offer Vaccine to Workers, Contractors and Board

Oil’s recent rise above $60 a barrel will test the willpower of shale companies that pledged to slow drilling and repair balance sheets battered by the pandemic.

The highest prices since January 2020 have given U.S. drillers an unexpected opening to invest in oil patches considered unworkable just a few months ago. Some, such as Devon Energy Corp. , have begun to loosen the purse strings as the market improves.

For now, though, many frackers are unable to take advantage of the rally as they work to restore as much as roughly one-third of the nation’s oil production. The winter storm that left millions without power this week knocked out as much as 2.5 million barrels a day in the Permian Basin and Eagle Ford of Texas and one million in other oil-rich states, traders estimated.

Icy roads have blocked service crews from reaching wells, and analysts estimated the disruptions could affect production through March. It will take weeks to determine exactly how many barrels will have been lost to the storm, Devon Chief Executive Richard Muncrief said.

In earnings calls this week, shale executives said they are sticking to capital discipline, which has become a mantra of the industry following a yearslong push by investors.

This post first appeared on wsj.com

Do You Enjoy This Article?
Sign up for our newsletter and receive FREE access to download SuccessDigest Digital Weekly Edition for attainment of your financial freedom in the new digital economy!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

COMMENTS

WORDPRESS: 0
DISQUS:
%d bloggers like this: