The explosive production growth in the U.S. shale patch has surprised even the most optimistic forecasters, but the huge jumps in output belies and obscures the financial state of the industry, which is a bit more complicated than the production figures might suggest. Shale companies scrambled to cut costs during the oil market downturn between 2014 and 2017, and they successfully lowered their breakeven prices significantly. When OPEC+ agreed on its initial production cut deal, which started at the beginning of 2017, the higher prices that resulted from the agreement allowed U.S. shale to rebound in a big way. Surging production over the past two years suggested that the shale industry was stronger than ever. This year was supposed to be the year that the money started rolling in – with cost cuts in hand and higher oil prices lifting all boats, shale drillers were supposed to be in […]