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
19 January 2026
Newfound optimism is emerging that a dormant exploration frontier could become a strategic energy play and—whisper it quietly—Europe’s next offshore opportunity
16 January 2026
The country’s global energy importance and domestic political fate are interlocked, highlighting its outsized oil and gas powers, and the heightened fallout risk
16 January 2026
The global maritime oil transport sector enters 2026 facing a rare convergence of crude oversupply, record newbuild deliveries and the potential easing of several geopolitical disruptions that have shaped trade flows since 2022
15 January 2026
Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026
