Pursuits
Shale Oil Architect Predicts Doom for Some Drillers Amid Slump
- Explorers will be “decimated” amid a wave of restructurings
- Low prices probably will linger for another 16 to 24 months
What Would It Take to Fix the Slumping Oil Market?
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Mark Papa, the former EOG Resources Inc. chief executive officer who helped create the shale industry more than a decade ago, said drillers are “grievously wounded” as crashing crude prices exact their toll.
Shale explorers will be “decimated” in coming months amid a wave of restructurings and bankruptcies, fallout from the 70 percent drop in oil prices since mid-2014, Papa, who is now a partner at private-equity firm Riverstone Holdings LLC, said during a panel discussion at the IHS CERAWeek event in Houston on Tuesday. Low prices probably will linger for another 16 to 24 months before supply cuts cause a rebound, he said.