US Shale Oil Faltering & Struggling

[Economy 52,861]

http://oilprice.com/Energy/Crude-Oil/The-Permian-Boom-Is-Coming-To-An-End.html

 

It appears as though Shale companies are really struggling and growth may flatten out completely at current levels

 

Companies have already trimed labor as much as they can. Laying off more people would affect operations. Also companies focused on most productive wells to lower cost per barrel but as they depleate they must either move on to less productive areas or buy more land, both will inquer higher costs

 

In addition service providers have started charging more for equipment and services as the lowest point of the Oil Cycle passed and now they are removing the discounts

 

Without prices above $60/barrel most companies cannot sustainably grow production any further unless they pile up on more debt. The current $50 to $55/barrel is only enough to keep production flat