U.S. Energy Secretary Chris Wright expressed confidence in the resilience of America’s shale industry despite recent declines in oil prices. In an interview with CNBC in Abu Dhabi, he stated, “The U.S. shale industry is going to survive and thrive.” Wright acknowledged that if low prices persist for an extended period, investment strategies might be affected. However, he remains optimistic about the industry’s long-term prospects. The pressure on oil prices is attributed to lower global demand, ongoing tariff uncertainties, and increased supply from both OPEC and non-OPEC nations.
As a result, shale producers face reduced revenues, threatening their stability. As of the latest update, Brent crude was priced at $63.51 per barrel, while U.S. WTI was at $60.26, both reflecting a decline of approximately 22% over the past year. Wright drew parallels with the period from 2014 to 2016 when lower demand led to a significant drop in oil prices, with the industry experiencing numerous bankruptcies. During that time, the shale sector demonstrated innovation by reducing costs and increasing efficiency.
He noted that even when oil prices plummeted to $28 per barrel in 2015 and 2016, the industry adapted and improved. However, analysts suggest that U.S. crude may need to exceed $65 per barrel to support shale producers adequately. In a recent update, Goldman Sachs revised its price outlook, projecting a decrease to $58 by December 2025 and further to $51 by December 2026. Wright’s background as a former shale executive lends credibility to his perspective, even as companies like Liberty Energy, which he founded, have faced challenges due to fluctuating oil prices.
Despite these difficulties, he believes in a collaborative energy future with OPEC and Arab Gulf allies, emphasizing a shared vision for energy abundance and affordability.