Morningstar analysts forecast shale decline rates and rig count uptick will stabilize US crude production. Oil and gas industry conditions stand to gain strength after 2017, in a confluence of growing demand and a collapse in no-shale capacity, according to an end-of-quarter report from Morningstar in Chicago. “We are increasingly bullish on oil prices rallying in the medium term , and have raised our WTI forecast to $65/bbl for 2018, which is the level we believe is required to drive a large-scale recovery in U.S. shale activity,” wrote analyst Joe Gemino. “Even so, the strength of U.S. shale is lurking beneath the surface: Our analysis shows that the recent uptick in rigs and falling shale decline rates together are enough to stabilize U.S. crude production within six months.” Gemino also said that if U.S. activity doesn’t scale back, production will begin to grow again in 2017. That highlights the […]