US tight oil turning over a new leaf?
A shale sector that emphasised returns over production growth would be a win from both shareholders and oil markets
Returns, returns, returns. Shale executives echoed each other on the latest round of quarterly calls with investors, promising wary shareholders and analysts that they're ready to start putting returns over production growth. This isn't the first time investors have heard the refrain, though. As the oil price recovered from its early 2016 lows, shale companies made a similar pledge. The days of spending beyond their means to chase loss-making output growth, executives told investors, were over. Then the animal spirits took hold again. The shale industry has spent about 50% more than it has brought in this year, while production quickly ramped up. Only a few companies have squeaked out profit
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
9 December 2025
The group’s oil production declined in November, our latest analysis finds, amid divided sentiment over market balances and geopolitical jitters
