US Shale Pivots to Smaller, More Resilient Sector

摘要

The oil market collapse is accelerating a profound structural change in the US tight oil patch. A flurry of consolidation is making 'Big Shale' companies even bigger — but to protect returns, not drive growth. Shale producers with more marginal portfolios and/or high debt loads will likely jump into mergers toward the end of the year and well into 2021, but it is uncertain these tie-ups will create competitive enterprises. The US shale sector will end up smaller, which will likely limit growth. However, it should be more financially resilient.