The importance of high-yield markets

Their role in fuelling the success of the US shale industry offers lessons for India's economy today

When one studies the evolution and growth of the shale industry in the US, one realises that it is a truly amazing success story. A triumph of entrepreneurship, technology, regulatory forbearance and private property rights. A bunch of wildcat drillers took the risk and were backed to the hilt by the capital markets. Largely due to the boom in shale oil or tight oil, US oil production, which had peaked in 1970 at 10 million barrels per day(Mbpd), has hit new highs in the last few years. After declining to 6 Mbpd in 2008, US oil production reversed course to