Higher oil prices are expected to prompt several companies to reconsider stock flotations that were shelved last year as crude prices remained below $50 a barrel for much of 2017.
Liberty Oilfield Services, a provider of hydraulic fracturing facilities which last year postponed a planned initial public offering (IPO), last week filed to raise around $160m as shale oil producers gear up to raise their output.
Improving market conditions
This has been prompted by Nymex WTI crude prices - which moved above $60 a barrel last month - raising the profitability of higher-cost shale and oil sands producers.
Law firm Baker Botts, which is underwriting Liberty's share sale, told Reuters: "We could see a quick ramp up in IPOs because there are so many in a good position to go quickly once market conditions improve."
Indeed, Liberty's IPO will be viewed by rivals - some of which also shelved plans to float last year - as a litmus test on appetite for new share sales in the US oil industry.
Rival fracking service providers FTS International, Nine Energy Service and BJ Services all registered with the Securities and Exchange Commission last year, but declined to proceed with their IPOs as oil prices fell to a low of around $42 a barrel in June.
Prices have since risen above $60 a barrel after an OPEC-led consortium of oil producers extended output curbs in November, while geopolitical tensions between the US and North Korea, and concerns over exports from Iran have also supported crude prices.
While the $60 mark provides a more profitable backdrop for North American shale producers, any large gear up in production risks a market oversupply that could very quickly see crude prices fall again.
Ole Hansen, head of commodity strategy at Saxo Bank, warned about the sustainability of oil prices above the £60 level.
He said: "One of the key arguments for oil not being sustainable above $60 has been the outlook for a strong production response from non-Opec producers. The route to a successful and sustainable price depends on limiting price-dependent producers' ability to increase production.
"A 2018 average price for WTI above $54 a barrel, up almost ten dollars from the June low, should be enough to support a robust pick-up in US production over the coming months."