Shale Oil Drilling Growth Primed to Restart in 2026, Citi Says
Key Takeaways
- 1Citi forecasts shale oil drilling growth will restart in 2026.
- 2This growth follows a period of muted activity.
- 3Economic recovery and oil prices are key drivers for the expected increase.
Market Pulse
Will a formal ceasefire framework be signed in a major active conflict zone by Q3 2026, leading to global oil benchmarks staying below $95 for the remainder of 2026?
Will global oil benchmarks (Brent/WTI) stay below $95 for the remainder of 2026?
Will new environmental regulations impact the oil and gas drilling industry in the next year?
Citi projects a resumption of shale oil drilling growth by 2026, signaling a potential shift in supply dynamics after years of restraint. This forecast is driven by improving economic conditions and potentially higher crude prices, impacting global energy markets and the profitability of exploration and production (E&P) companies. Investors should monitor evolving oil demand, OPEC+ decisions, and the capital expenditure plans of major shale producers for sustained growth indicators.