The rising demand for materials like sand and water for the hydraulic fracturing process has driven up prices.

Related: Energy ETFs to Capture the Strength in Oil Refiners

Over a dozen shale companies have either lowered production targets, said they would spend more to extract the same amount of oil or missed expectation for growth during this earnings season.

Since 2016, the average oil price at which drillers can turn a profit on new shale wells has flattened in some areas of the Permian and increased by an average 17% in others, according to Rystad Energy.

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