Many Shale Companies Are Already On The Brink Of Bankruptcy | OilPrice.com:
OPEC may have reached a deal to cut 10 million bpd, but for many U.S. shale producers, it is too little, far too late.
Much ado has been made about Saudi Arabia and Russia’s push to end their cooperation in the production cut deal a month ago, flooding the markets with oil at a perilous time. While some have suggested that it was a deliberate attempt to break the U.S. Shale industry that has run roughshod over the oil industry in the last few years, upsetting the market balance of the oil cartel.
Both Saudi Arabia and Russia have outright denied the claim that is was a purposeful attack on the shale industry—a wise proclamation given shale’s fastidious ally, U.S. President Donald Trump, who has praised the shale industry that has served as the platform for America’s energy independence efforts.
Those efforts have been wildly successful by any measuring stick, and for that reason, shale will not be allowed to die no matter what Saudi Arabia and Russia dish out.
OPEC may have reached a deal to cut 10 million bpd, but for many U.S. shale producers, it is too little, far too late.
Much ado has been made about Saudi Arabia and Russia’s push to end their cooperation in the production cut deal a month ago, flooding the markets with oil at a perilous time. While some have suggested that it was a deliberate attempt to break the U.S. Shale industry that has run roughshod over the oil industry in the last few years, upsetting the market balance of the oil cartel.
Both Saudi Arabia and Russia have outright denied the claim that is was a purposeful attack on the shale industry—a wise proclamation given shale’s fastidious ally, U.S. President Donald Trump, who has praised the shale industry that has served as the platform for America’s energy independence efforts.
Those efforts have been wildly successful by any measuring stick, and for that reason, shale will not be allowed to die no matter what Saudi Arabia and Russia dish out.
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| OPEC data source: OPEC MOMR, Russia Data Source: Y charts, U.S. production, EIA. Figures represent the change from October 2016, the baseline for the initial round of the production cuts that began in 2017. |
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