World Business Report As oil price surges, will US fracking production increase?
Mar 17, 2026
John Cohen, author on sports gambling, talks March Madness and betting risks. Ioni Wells, BBC reporter, files a field report from Venezuela about young people's hopes and daily struggles. Ahelan Kallarigama, economist, outlines Sri Lanka's fuel rationing and four-day work week. Brad Setzer, economist, analyses Ireland's corporate tax receipts and profit shifting. Mike Eastman, oil CEO, discusses frackers’ response to oil price spikes.
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Shale Firms Ignore Temporary Price Spikes
- US shale producers are avoiding short-term reactions to geopolitical price spikes and plan drilling based on conservative long-term prices.
- Mike Eastman says Tall City models projects on about $60 oil and continues planned drilling despite a recent three-week $95 spike.
Post‑2020 Shale Discipline Changed Growth Strategy
- Financial discipline in US shale intensified after 2020, prioritising returns and buybacks over growth-at-all-costs.
- Eastman notes wells cost roughly $10 million each, so companies choose conservative economics to protect capital.
Model Projects Using Conservative Price Assumptions
- Use conservative price assumptions when sanctioning expensive oil projects to ensure economics remain viable through price swings.
- Eastman emphasises modelling projects well below current highs because each well costs about $10 million.