America's tight oil producers will add new supply in 2018, but the pace of additions will slow. Investors have been fretting over the growth-at-all-costs model, and a more tempered approach will take hold. Drilling activity rose sharply from June 2016 to June 2017; the rig count in the top four tight oil basins more than doubled. Production tends to lag a new well by about six months, so that run-up fuelled strong output growth through 2017. But the rig count crested in the summer and fell back to about 520 rigs for the rest of 2017. Unless a sudden price surge changes things quickly, the effect will be felt in early 2018.
展开▼
