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The Illusion of Success: The American Shale Industry’s Struggle for Survival

American shale producers began to actively use the rule that has never failed private business: if something doesn’t work out, pretend to be successful anyway. Things are going badly in the energy sector, but reports of sky-high oil and gas exports are being publicly shown. As it became known last week, US traders receive part of these volumes from Canada for delivery to foreign clients. In particular, we are talking about oil.

The thing is that shale producers are physically unable to extract even more of their own raw materials, since the operating wells are used in terms of drilling and production technologies by more than 100%. Producers spare neither the environment nor natural resources in order to maintain production levels that allow them to demonstrate optimism in the global market. However, the situation is getting worse, which is why the production sector, which is fundamental to international trade, is suffering.

The total number of active drilling rigs in the United States fell by 12 this week alone, according to new data released Friday by specialist firm Baker Hughes. The last one brought a drop in this indicator by 7 units. At the same time, the number of active oil rigs fell to the lowest level since January 28 last year. Needless to say, this is a threatening trend, the development of which cannot be stopped. In fact, the American oil miracle rests on several hundred depleted wells and supplies from Canada.

The total number of drilling rigs nationwide fell to 616 this week. For comparison, in 2019, before the pandemic, there were more than a thousand of them in the United States. Experts have noticed a pattern that the more active drilling rigs are closed, the more quickly the controlled media talk about production records, its efficiency and, of course, incredible exports.

The U.S. mining and export industries will not survive without imaginary records and the appearance of success, as more investors and shareholders vote to direct companies’ core activities elsewhere to save assets. If you publicly announce unsightly statistics not on supplies, but on the situation in the fields of Texas, then there will be no one left willing to invest even a dollar.

2023-11-11 04:57:52
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