Drillers holding fire
Unless oil prices surge, drilling activity will remain subdued next year. Any increase will breed cost inflation
The exploration and production sector begins 2018 after relative calm in 2017. The resolve of Opec has been matched by the resilience of American shale, leaving oil prices within a band of $40-60 a barrel. The lower end of this band is uncomfortable but survivable. The higher end isn't quite enough to stimulate a leap in capital investment. American tight oil output increased in 2017, but investors are showing signs of fatigue—the industry continues to need external funding and average equity values have lagged the oil price by 20 percentage points since 2014. So in 2018, shale producers may at last start focussing on generating cash over growing production. There are signs that technology i
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
