Quote:
Originally Posted by IliketoPuck
I disagree.
Commodity prices have been low enough for long enough that material damage has been done to balance sheets.
There will not be an immediate resurgence of rigs and shale producers. The capital isn't there. Companies will focus on repairing their balance sheets, and a slow ramp up in rigs is more likely, IMO.
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Quote:
Originally Posted by burn_this_city
The shale guys are far too wounded to redeploy anywhere close to the number of rigs they had working previously. Most of the production growth was fueled by cheap debt that has all but dried up.
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I think that the cash has dried up for the time being, but as soon as it looks profitable will those banks roll in and open the taps again to get the oil flowing again? From my limited conversations with some guys at some US companies they have some aggressive plans.