U.S. shale producers are falling behind in the Red Queen’s Race as the downturn in drilling means that new oil production is failing offset falling output from existing wells. The famous race is named after the scene from Lewis Carroll’s novel “Through the Looking-Glass”, in which the Red Queen warns Alice: “It takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run twice as fast.” The race is a metaphor for the relationship between increased oil production from newly drilled wells on the one hand and declining output from old wells on the other. The net result is that the downturn in drilling is threatening to cut output for the first time since the start of the shale revolution. Other forms of oil production, notably from offshore fields in the Gulf of Mexico, […]