Could the US Shale Oil Industry Collapse?

[jace lau + 2]

The US shale industry could be on the verge of destruction due to the drastic decline in demand and falling energy prices brought on by coronavirus pandemic, a new report says. 

https://www.investreader.com/topics/vkNTu2zchps

What do you think?

[Dan Clemmensen + 1,011]

The US shale industry is not some sort of a monolithic cartel. There is no small secret cabal that gets together and makes binding collective decisions. Instead, there is a separate (more or less) free market for each of the many components, and the companies in each of these markets compete with each other. The investment community is also not a small secret cabal. Investors (including fund managers) make individual decisions as to whether or not to invest in any of the hundreds of companies that make up "the US shale industry". This means that all overgeneralizations about a collapse, including this one, are false. In the last decade, "the industry" has continued to expand any time that enough investors were willing to believe that the oil price was high enough to turn a profit.