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James Regan

This is a Shale Problem

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The current situation we are going through is without doubt a localised issue, sure we have seen the price of crude for both benchmarks drop but the spread between WTI and Brent gets bigger as we move along, the US rig count tells a tale which is hard to disagree with and that is that the LTO/Shale plays have managed to focus the heat on themselves. The ease at which a land job can be funded and set up is also its downfall as it can be removed just as quickly. For the IOCs first in line will be the land rigs and especially the marginal plays. 

Each time we go through a slump the industry makes changes adjusts belt and moves along, this is the Shale plays first major hit, does it have the foundation to weather restructuring at this point?

This sector will most definitely go to the big boys who will make big boy calls, too many sure things out there to risk investors money and goodwill on. Real Investors I mean stake holders with an interest in longevity.

Rig Count tells it all

Edited by James Regan
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