The boom in shale oil development was gradual compared to its bust. Within months it has returned to levels last seen years ago. Oil wells aren’t eternal. Much of the oil production is coming from wells that only work for a few years. The industry has been financed by rolling debt that only works as new wells replace the old wells. With fewer new wells than old it is easy for finances to fail. The next few weeks will be key as we watch to see if the trend continues or bounces back. As long as oil prices are down, however, the trend is more likely and the impact more pronounced.
“Collapse Of US Oil Shale Recovery” – REneweconomy
Pretending Not To Panic 