Thursday 12 November 2015 8:23 pm
Shale companies, like the mining sector, have been caught in a downward spiral, spending more in order to produce more, and ultimately running faster just to stay in the same place.
Consolidation is one possibility for those firms involved – similar to the moves in the oil and mining sectors in the 1990s and early 2000s – and this will stave off the day of reckoning.
But not all firms will find a rescuer, and the weakest will be knocked out. Reality is finally catching up with the sector, and it will not be pleasant.
With Iraq pumping oil at its fastest rate since the early 1960s, is this the end of the road for US shale?
City A.M.'s opinion pages are a place for thought-provoking views and debate. These views are not necessarily shared by City A.M.