The cost of U.S. shale oil production is set to rise from $70 to $95 per barrel by the mid-2030s, impacting global energy markets. North America’s core oil inventory is depleting, reducing its ability to meet global demand growth, leading to a shift in investment strategies in the industry.

Canadian oil production is expected to increase by 450,000 barrels per day by 2030, benefiting from strong prices and infrastructure capacity. Meanwhile, the U.S. shale patch faces flatter growth curves and higher costs, prompting companies to adjust strategies as core inventory depletes.

U.S. shale producers are reducing capital budgets and relying on efficiency gains to maintain output levels amid lower oil prices. Despite efforts to support the industry, large shale producers are calling the peak of oil output, with uncertainty around trade policies and regulatory changes affecting investment decisions.

The Dallas Fed Energy Survey reveals that most executives estimate reduced breakeven costs for new wells under the current administration. However, heightened uncertainty about oil prices and production costs has led to delayed investment decisions, impacting the industry’s future outlook.

Executives in the oil industry blame political hostility and economic ignorance for the decline of U.S. shale production. They criticize both the previous and current administrations for aligning with OPEC and implementing policies that undermine domestic production, leading to the industry’s downfall. The collapse of capital availability is leading to consolidation in the shale patch, squeezing out independents and entrepreneurs. A few giants now dominate, causing job loss and a shift away from the risk-taking culture that defined the industry. This shift may have long-term consequences for the U.S. shale industry.

Read more at Yahoo Finance: U.S. Shale Costs to Soar to $95 per Barrel Within a Decade