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
Latest licensing rounds
13 December 2017
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
East Mediterranean—a mixed bag
12 December 2017
While Egypt's gas output is set to soar, Cypriot and Israeli exports are being curtailed by regional politics and low prices. It's a mixed outlook for East Mediterranean gas
How resilient has US shale become?
8 December 2017
Genuine gains have been made, but the industry will need further technological breakthroughs to overcome the geology