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An oil well and storage tanks in Belfield, N.D., are in the Bakken shale formation.
An oil well and storage tanks in Belfield, N.D., are in the Bakken shale formation.
(JIM WILSON/NYT)

U.S. shale oil could withstand big price correction: analyst

U.S. oil production from shale formations such as the Bakken in North Dakota and Eagle Ford in Texas would remain economically viable even if world crude prices drop by as much as 30 per cent from today’s levels, a U.S. analyst says.

The industry that has revolutionized North American energy supply faces numerous risks, including the potential for weak markets, transport constraints and the inability of technology to keep up with demand, though none currently looks like it could force a halt in drilling for the light, tight oil, said Skip York, analyst at Wood Mackenzie, the international energy consultancy.