Oil’s vault above $95 a barrel is tempting US shale energy executives to fire up drilling rigs in search of more crude, risking the wrath of Wall Street in the process.
A sector once known for debt-fuelled production binges that made the US the world’s biggest oil supplier has largely embraced financial discipline, with executives pledging never again to outspend cash flow and burn through capital on costly projects.
But the rebound of oil markets to the highest levels since 2014 is challenging that resolve. The response from shale companies will determine the path of US oil output that is languishing well below its pre-pandemic peak.