U.S. shale oil producers, having weathered the worst price plunge in their industry's brief history, now face a dilemma: whether to stay in a defensive crouch after slashing their rig fleets, or start drilling more wells to capture a partial recovery in prices.
The oil price drop that has dominated the headlines in recent weeks has been framed almost exclusively in terms of oil market economics, with most media outlets blaming Saudi Arabia, through its OPEC Trojan horse, for driving down the price, thus causing serious damage to the world's major oil exporters – most notably Russia.
In this interview with The Energy Report, Damaskos argues that current prices are dismal news for the majors, shale oil producers and the oil sands but underlines the advantage of investment in juniors with solid, long-term projects, of which he presents five.
As impressive as shale gas and oil production has been in North America, Evan Smith expects 2014 to break records as producers move to a pure manufacturing process and drill multiple horizontal wells from a single pad. Smith tells us why a few of the companies in his fund had a stellar 2013, and why they could go even higher in 2014.