Related Articles
Forward article link
Share PDF with colleagues

US shale drillers feel the financial crunch

The financial pain from lower oil prices is taking its toll on shale producers

US shale producers’ finances are coming under heavy pressure as the oil rout continues. Amid a much-feared double dip in the oil price that has sent prices to lows not seen since 2009, US shale sector earnings have plummeted, debt is on the rise and the sector is bleeding cash. This all points to a shakeout that will see weaker companies forced to sell assets and become takeover targets in the next year and is forcing companies to cut back production. A Petroleum Economist survey of 14 leading shale-focused companies’ second quarter results shows the pain being felt in the shale patch. Their combined earnings swung from a $5.8bn profit in the second quarter of 2014 to a $16.2bn loss in the

Also in this section
Statoil's ray of North Sea sunshine
17 October 2017
The Verbier discovery is undoubtedly a welcome boost for the UK oil industry, but plenty more like it will be needed to arrest the region’s decline
10 lessons from a decade of exploration
17 October 2017
Finding oil and gas in frontier plays has become harder. An industry veteran has some advice
Brazil beckons with new oil auction
13 October 2017
The first bid round in two years will test investor interest after a tumultuous period for the country