The big shale capital crunch
US tight oil producers are pulling out all the stops to get through the sector’s first major test
It's survival time for America’s shale drillers. At $30 a barrel, it’s not a profitable business. Dozens of companies have already been forced into bankruptcy and many more are likely to follow without a swift price recovery. The sector is overburdened with debt and isn’t generating anywhere near enough cash. Things are so bad in the US oil patch that some have starting to draw parallels with the US telecom bust in the early 2000s that tipped the US into recession. The gloomiest forecasters – whisper it – even compare things with the 2008 mortgage crisis. The sector’s finances have eroded with each step down in the oil price. The $200bn in debt taken on by shale drillers supercharged the se
Also in this section
14 January 2026
Chavez’s socialist reforms boosted state control but pushed knowledge and capital out of the sector, opening the way for the US shale revolution
14 January 2026
Leading economies in the region are using oil and gas revenues to fund mineral strategies and power hyperscale computing
14 January 2026
The South American country offers stable, transparent and high-potential opportunities and is now ready for fresh exploration and partnership
13 January 2026
Across Europe, countries have grappled with balancing ambitious energy transition plans with realities about security of supply
