Shale Drillers Set to Boost Output Amid Crude Price Surge

The recent surge in crude oil prices has prompted US shale drillers to increase production. The 68% rise in crude prices since the US and Israel's attacks on Iran five weeks ago is a significant incentive for American oil executives to ramp up output.

Citigroup Inc., Enverus Inc., and government analysts at the Energy Information Administration all agree that shale explorers require oil prices between $62 and $70 per barrel to turn a profit. With the US benchmark trading around $115, elevated prices are expected to drive production increases in the coming months.

The Trump administration has repeatedly called on US companies to boost crude output, but management teams have been hesitant to invest in new wells when oil prices weren't high enough. However, with the biggest oil-market disruption in history underway, shale bosses like Harold Hamm are now committing to increasing production.