A very good read here from the Financial Times – generously ungated and free to read …
US shale industry faces endurance test after Opec rejects cuts
- Rather than a war, the US shale industry is braced for a test of endurance. As the pressure on oil producers mounts, weak companies face the threat of dwindling investment, faltering production, forced asset sales and possible bankruptcy.
- The successful companies will be the ones that both entered the downturn in the strongest position and are most effective at improving their efficiency. They can hope to make it through to better days when the oil price recovers and are also likely to be able to pick up some undervalued assets.
