Trump May Open the Hormuz, But He Can’t Prevent Next Oil ShockThe investment community watching the Strait of Hormuz is treating a possible armistice, freer tanker traffic and pressure from Washington as if they could settle the oil market’s bigger question. Rule’s research shows that the global oil and gas industry (including state-owned producers) has underinvested in sustaining capital by more than $1 billion a day. According to Forbes, Enverus Intelligence Research puts the average breakeven for new US shale wells at $70 a barrel of West Texas Intermediate, above recent spot prices. “As core shale oil inventory in the US depletes, the industry is entering a new era of higher costs and more complex development,” Enverus director Alex Ljubojevic said. Meanwhile, Freehold Royalties (OTC:FRHLF) offers a royalty income that rises with volumes and prices without directly absorbing drilling inflation or sustaining-capital demands.