Oil & Gas Boom 2021: Strong Prices, Record Revenues, Another Big Merger

Oil & Gas Boom 2021: Strong Prices, Record Revenues, Another Big Merger

Share to Linkedin The domestic oil and gas boom of 2021 continues into May, driven by strong crude oil prices that most analysts think will get stronger, recovering global demand, and by fiscal discipline being practiced by the big shale producers. This combination of factors holds the promise of a big, record-setting year for the U. S. oil and gas sector. How big could it become? International business intelligence firm Rystad Energy projects it could be the biggest year yet for U. S. shale. The firm issued a report this week projecting that the sector's aggregated pre-hedging revenues could reach a record $195 billion during 2021, surpassing the previous record of $191 billion set during the previous big boom in 2019. Rystad projects that hydrocarbon sales from wells in the Permian Basin alone could reach $110 billion, and also factors in estimates for all shale and tight wells in the Bakken, Niobrara, Marcellus and Anadarko regions of the country. One important caveat, though: Rystad adds that the shale business might not reach record-setting revenue until 2022 due to losses suffered in hedging programs that tie some companies' production to lower than current market prices. Also important: Rystad sees corporate fiscal