Shakeout on the cards for US shale

Chevron holds interest in the Horn River shale basin in British Columbia. (Devon Energy)

Wafer-thin margins and mounting debts have been a thorn in the side of shale producers in the United States for many years despite the spectacular increases in oil, gas and NGL production resulting from the shale revolution. Now there are growing signs a shakeout in the industry may be on the cards.

The US Energy Information Administration forecast growth in US crude oil production of just 0.9 million barrels per day (MMb/d) in 2020, compared to growth of 1.6 MMb/d in 2018 and 1.3 MMb/d in...