The US Oil Shale Industry Is Doing More With Less

The US oil industry is often compared to being on a treadmill: you run fast just to stay still. Because shale wells quickly sputter, companies need to rapidly drill replacements — a laborious and expensive endeavor. Of late, the treadmill feels like it’s running just a bit slower. The result? American oil production is holding up despite Saudi Arabia and Russia driving prices down.

The outcome is crucial for the crude market as two out of every 10 barrels worldwide are pumped by the US. For the OPEC+ cartel, more resilient American oil production will lower prices for the rest of this year and into 2026.

The trend was clear during the industry’s earnings season. In quarterly updates and conference calls, most companies announced what Houston oil banker Dan Pickering summed up as “more production, less spending.” Jeff Leitzell, chief operating officer of shale giant EOG Resources Inc., set the tone: “Once again, we outperformed both our production and cost expectations.”

Shale companies are doing more with less by creating wells more quickly, and that reach further into the rock. In the process, they’re reducing the number of drilling rigs and fracking crews, lowering costs. Kaes Van't Hof, chief executive officer of shale giant Diamondback Energy Inc., reckons his company is pushing “the limits of efficiency.” Others are too. Once upon a time, shale wells took several weeks to drill; now, some are ready in four days.