Economic malaise threatens to upend US indies

Domestic oil sector in upheaval as producers forced to confront commodity price shock

Saudi Arabian efforts to stifle output growth in the US shale patch are causing what looks very like panic among North American producers. Production guidance across the industry has been hacked and exploration campaigns reduced or abandoned. WTI has fallen to its lowest point in over two decades, even testing the $20/bl barrier. US E&P companies across the board have drastically downgraded their capex budgets and financial obligations. Independent producers in the Permian—including the likes of Marathon Oil, Apache and Concho Resources—have all dialled back plans and braced themselves for an arduous operating year. Domestic US shale growth is particularly at risk if the oil price contin