The U.S. shale sector is capable of ramping up oil production even if prices fall to $50 per barrel, according to U.S. Energy Secretary, Chris Wright.
What Happened: Wright, formerly the CEO of Liberty Energy (NYSE:LBRT), is optimistic about the sector’s potential to innovate and achieve efficiency gains, thereby enabling higher production at lower prices, reported The Financial Times.
He said that they were going to see the same kind of market dynamics at that time. He explained that new supply would drive prices down, companies would innovate and lower their prices, and consumers and suppliers would fluctuate between options.
the U.S. shale sector is well-positioned to fulfill Donald Trump‘s call to “drill, baby, drill,” he added.
However, he anticipates an industry disruption similar to the 2014 price war between OPEC producers and the shale industry. “There …
