for Shale Debt
Making a profit in the shale patch has been an uphill battle to begin with for many companies, but the latest crash in crude prices makes that task much more difficult. Bankruptcies could begin to rise if oil prices fail to rebound.
Shale has upended global energy markets but two questions remain unanswered: Can it be called upon to meet demand growth, and will it ever be profitable?
Both banks and regulators are cracking down on shale producers, as 10 of the largest U.S. banks still have $147 billion in unfunded credit to energy companies.