Is Wall Street Funding A Shale Failure?

13 Jul 2017   Shale Oil

The latest figures from the EIA show that despite some hiccups, the shale rebound is still on track. Last week, the sharp drawdown in inventories made headlines, but buried within the weekly figures was a bounce back in oil production, reigniting fears that the market will take much longer to balance. (Click to enlarge) The U.S. shale industry has already added almost a half million barrels per day since the end of last year, taking production up to 9.3 million barrels per day (mb/d). But production is expected to continue to grow rapidly, with projections putting output at a record-high 10 mb/d by next year. The coming wave of new supply will only be possible with the generous help of Wall Street. According to the Wall Street Journal , major banks and investors have showered the industry with credit and equity, pouring an estimated $57 billion into the sector […]

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