US shale needs $60/bl to restore growth: Anadarko

OREANDA-NEWS. June 27, 2016. Crude prices of \\$50-55/bl are not high enough to rekindle US shale oil output growth, Anadarko chief executive Al Walker says. "At \\$50-55/bl, we don't cycle cash quickly enough to create capital investment for growth," he says.

The industry needs "\\$60/bl or more, at service costs we have today, for the cash cycle to start".

The near doubling in crude prices since the first quarter has reversed a slide in the US rig count and prompted low-cost producers, including Pioneer and Devon, to plan to step up drilling later this year. But Walker says the price rises have been largely driven by supply disruptions in countries such as Canada and Nigeria, meaning that price support could falter when these flows resume.