Shale oil skeptics claim that the global crude supply is turning alarmingly light due to the growth of shale production. The world is facing acute shortages of heavy and medium grades, the argument goes, and shale oil is of little help in meeting that demand. Market data indicate that the claim is without merit. Shale growth has been perfectly well accommodated by the global refining system. Shale oil is fully “sold out” and trades at premiums to heavy grades. The rapid increase in U.S. crude production in the second half of last year defeated the claim by shale skeptics that the U.S. oil industry was struggling to grow volumes and an acute global supply shortage was just around the corner. According to the EIA, U.S. production exited 2017 with an impressive 1.2 million barrels per day (“MMb/d”) increase. As U.S. production growth returned, with a vengeance, a new […]