US shale oil and gas producers to record cash flow – around $200bn – in 2022
US shale oil and gas producers will record a cash flow of around $200bn in 2022, allowing the industry to pay off all debts by 2024 and start ramping up production, Deloitte LLP experts say.
Rising oil and gas prices and a disciplined approach to capital allocation by the sector will allow it to make up for losses incurred in previous years as a result of falling prices, Bloomberg said. Having paid off debts and rewarded shareholders, US producers are likely to focus on boosting gas production, whose prices have risen sharply amid rising demand around the world.
“We are seeing a shift in upstream activity towards natural gas,” Amy Chronis, who is responsible for the US oil and gas sector at Deloitte, told the agency.
Shale gas producers, she said, would be increasing activity in U.S. gas fields and would have enough cash resources to invest more in low-carbon fuels.
Deloitte estimates that global oil and gas companies are currently spending about 60% less on investments than in 2014, when oil prices were also hovering around $100 a barrel.
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