Wall Street questions financial viability of fracking industry. Just like coal and gas fired power plants, if Wall Street banks refuse to fund fracking operations, they can’t happen.
The U.S. shale industry has had a rough few weeks, with a growing number of reports suggesting that the industry is facing much more financial trouble than many analysts had expected. Now, a new report adds further evidence to the notion that shale is losing its luster in a $50 per barrel market, with producers forgoing shale in favor of older wells.
U.S. shale was thought to be the most competitive source of oil out there, and indeed the industry appears to be ramping up production at today?s prices. Shale had adapted to a $50 per barrel market, producers had streamlined operations to make them almost resemble an assembly line, and in a volatile and unpredictable market, the short-cycle nature of shale drilling made it one of the least risky options for drillers.
But in just a few weeks? time, investors are starting to
View original post 651 more words