Why shale may not stage a comeback despite higher oil prices – The National

Why shale may not stage a comeback despite higher oil prices – The National

Inflation in the oil sector is worsening and industry executives see no reason to expect cost pressures on everything from steel pipe to frack sand to ease any time soon.

The price spiral has been so swift and dramatic that oil chief executives are being forced to revise annual spending plans higher just to preserve crude and natural gas output targets.

Those same executives are warning that rampant oilfield inflation make any significant increase in domestic oil production much more difficult to attain despite the incentive of $100-a-barrel crude.