Hess CEO Says U.S. Shale is Beginning to Plateau, Acknowledges Climate Change as a Real Threat

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From Reuters:
Shale pioneer John Hess said on Tuesday that key U.S. shale fields are starting to plateau, calling shale “important but not the next Saudi Arabia.” 
Over the past decade, the shale revolution turned the United States into the world’s largest crude producer and a force in energy exports. Yet that did not translate to higher stock prices or returns for investors, with the S&P 500 Energy sector only gaining 6% in a decade, far less than the 180% return for the broader stock market. 
Companies remain under pressure to trim budgets and produce enough free cash flow to pay investors higher dividends or buy back shares. The biggest industry challenge is the lack of long-term investment, Hess said. 
Production in the Eagle Ford Shale in South Texas is starting to plateau, while the Bakken field in North Dakota where Hess is a major producer will hit its peak production levels within the next two years, said Hess, who spoke Tuesday in Houston at the Argus Americas Crude Summit.
Read the whole article by clicking right here. 

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