Reported 9 months ago
A survey by the Federal Reserve Bank of Dallas indicates that if the ongoing corporate acquisition trend in the shale sector continues, US oil production is likely to decrease. Over 50% of oil executives predict lower domestic crude output due to consolidation among E&P firms, leading to reduced investment in exploration. This trend has resulted in decreased activity in the oil patch, with about 48% expecting slightly lower output and 6% foreseeing significantly lower production. Shale explorers' recent wave of acquisitions, totaling $250 billion, raises concerns about potential supply impacts that could affect the oil market's dynamics.
Source: YAHOO