Why U.S. shale output is holding up in a $60 oil world

U.S. oil production is defying gravity—and expectations, The Wall Street Journal writes. 

Despite crude prices falling below $60 a barrel and rig counts shrinking, American producers pumped a record 13.6 million barrels a day last year, buoyed by remote monitoring, longer horizontal wells and drilling innovations that squeeze more output from fewer rigs.

That resilience has helped keep gasoline prices lower and inflation in check―a political and economic win for the Trump administration. 

Consolidation has also reshaped the industry, with oil majors such as Chevron and ExxonMobil wielding stronger balance sheets and driving efficiency gains across the Permian Basin.

But the surge may not last. Analysts warn production could plateau as prime drilling acreage dwindles and shale fields mature, potentially setting the stage for higher prices later this decade. 

Read the full story from The Wall Street Journal.