Shale Markets Present a Key Financial Challenge
Shale gas production has positively transformed the US natural gas supply markets over the past decade. Billions of dollars in capital continue to be deployed by oil majors to tap domestic shale resources. The success has spawned some challenges as well – A supply glut has led to depressed natural gas prices while the oilfield services (OFS) market, limited on materials (e.g. rigs) and skilled labor, remains resilient. Deployed capital demands financial returns and prevailing “stagflation” type conditions must be overcome to achieve it.