BIS central bankers’ speeches  The Hog cycle It’s only a slight exaggeration to say that, when oil is worth $ per barrel, there is oil everywhere. The U.S. oil industry is a case in point (Chart 7). The so-called “shale revolution” that started six years ago has been nothing short of astounding. In 2008, the production of shale oil was almost non-existent.
Today, the sector produces about 4 million barrels a day and, before the recent drop in prices, was on track to increase its output to almost 4.8 million barrels a day in 2020. We’ve also seen a powerful supply response to high prices in Canada.