Around 41pc of forecast US E&P production has so far been hedged in 2021
Conservative hedging bruises US shale
Operator balance sheets are benefitting from the uplift in oil prices, but many could miss out as the bulk of their production is locked into more muted pricing
Results season painted a cheerier picture for much of the US shale patch in Q1, with revenues rebounding as WTI comfortably surpassed $50/bl. But while many operators boasted stronger cash flow and debt reduction during the quarter, cautious hedging could see the sector miss out on billions of dollars. Around 41pc of forecast US E&P production has so far been hedged in 2021, estimates consultancy Rystad Energy. And the average floor price of $42/bl is significantly less than the $65/bl WTI average in April. Houston-based consultancy Opportune surveyed the 30 largest public oil and gas companies operating across the US shale patch. Of the 27 that disclosed hedging, average crude swap pric
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
