FANG - Amid Growing Signs Of A Global Energy Crunch Shale Offers False Hope

• As energy demand recovers from the COVID crisis, we are discovering that there are signs of supply/demand tightness, with natural gas prices rallying robustly.
• In the past decade, shale oil & gas production gains helped to meet most of the global demand growth we experienced.
• There are some voices expressing hope for a repeat of last decade's energy supply scenario.
• There is to date very little evidence to suggest that higher oil & gas prices are helping to stimulate shale producers to increase drilling significantly.
• The unfolding energy crisis in Europe is set to spread to the rest of the world, even if to a much lesser extent, and the world economy will suffer.

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