U.S. Shale Producers Remain Cautious Despite Oil Rally

Earlier this month, the Dallas Fed reported that the local oil industry was getting more upbeat about the future, expecting higher prices and expanding production. In fact, the Dallas Fed reported that production growth had sped up in the third quarter. The Energy Information Administration, however, had a different message: it forecast a continued decline across the shale patch, led by the Permian—the most prolific shale play in the U.

S. right now. On the face of it, these messages were conflicting. Below the face, however,…