US oil shale industry could pose a threat to the entire oil market
US, WASHINGTON (ORDO NEWS) — The American shale sector now poses a certain threat to the world oil market, since while other countries are reducing production under the agreements, the United States may reverse the recovery process.
This was told by the senior partner of FP Wealth Solutions Igor Stremoukhov. He noted that usually, as soon as the cost of oil begins to rise, American shale companies immediately resume work.
However, today the situation is complicated by the fact that the financial conditions for such borrowers have tightened, which is why many representatives of the industry cannot find the money to continue working.
Attempts to increase production may be extremely short-sighted, the expert said. According to him, any increase in production amid a recovery in the market can reduce all efforts to naught.
In addition, in recent months, world reserves of black gold have increased significantly, so it will take a lot of time to stabilize prices.
Thus, the representatives of the American shale sector have one option to survive – to reduce production in the wake of other major oil producers.
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