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The future of the shale industry in light of the fluctuations in global oil prices
Energy and Environment ; 2022.
Article in English | Scopus | ID: covidwho-2194519
ABSTRACT
During the twentieth and twenty-first centuries, the oil industry has been pivotal in influencing all countries' geopolitical, economic, and human development strategies. Until recently, the debate was about peak oil and what would happen after oil finished. However, due to technological advances and hydraulic fracturing, shale oil formations have become economically viable due to the United States' desire to achieve energy security to make a qualitative shift in the oil industry and the geopolitics of oil. Therefore, this paper deals with an economic model that illustrates the impact of oil price fluctuations to the shale oil and gas companies by analyzing the main determinants of continuity of shale oil and gas companies in production if global oil prices decline or rise. In addition, the study will investigate the effects of OPEC+ policy and Covid-19 on the future of shale oil industry. The study will discuss some future scenarios for global energy trends and predict what the shale industry will look like in the future. The study concluded the shale industry faces an internal destructive process (within the industry itself) and external (Renewable energy, OPEC and Covid-19). The stability of oil prices is a critical factor that promotes the shale industry's recovery. However, shale industry is expected to continue with low productivity growth rates and continuing government support for it. © The Author(s) 2022.
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Full text: Available Collection: Databases of international organizations Database: Scopus Language: English Journal: Energy and Environment Year: 2022 Document Type: Article

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Full text: Available Collection: Databases of international organizations Database: Scopus Language: English Journal: Energy and Environment Year: 2022 Document Type: Article