Opec crude output cuts should help US shale profits in 2021

The Business Times | Jan 10, 2021 at 1:00 AM
  • A decision by Opec and allied countries to cut crude production through March delivered a late Christmas present for US shale firms that have slashed costs, but any rise in prices spurred by the unexpected move may be just a modest stocking stuffer.
  • Higher crude prices will fall directly to US producers’ bottom lines given recent cost cuts and commitments to keeping output flat.
  • In top two US shale fields, oil and gas companies are profitable in the US$30 per barrel to low US$40s per barrel range.