Shale’s New Reality: Almost All Wells Drilled Now Lose Money
- Over 100 producers can’t turn profits with oil at $31
- Shale sector had seen investors flee thanks to paltry returns
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America’s shale producers already had a profitability problem. It just got a lot worse.
At a stroke, Saudi Arabia and Russia and their battle for market share have made almost all U.S. shale drilling unprofitable. Only five companies in two areas of the country have breakeven costs lower than the current oil price, according to data compiled by Rystad Energy, an Oslo-based consultancy.