More evidence the low oil prices are starting to bite US shale producers. A few snippets from an article in today's Fin Review.
"The firm has identified 22 companies "under duress" from lower oil prices, with $33bn of assets, including eight that have filed for bankruptcy protection and others warning of insolvency or deferred bond interest payments.
A dozen of the groups identified by Bernstein had their production assets in North America, with the rest spread across South America, Europe and the Asia-Pacific region."
and
"Five years ago the consequences of the price plunge were limited by the rise in US production that heralded the shale boom. This time, those higher cost shale resources make up a much bigger proportion of US output. Most of the casualties this time are in the US and Canada, where the tumble in crude has hit oil sands producers hard."
FDM Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
