Wary shale investors warn against drilling at all costs. In 2014, the US shale industry helped tip itself into a downturn when booming production created a glut on world markets. Now investors are urging it to avoid making the same mistake a second time. Capital discipline and shareholder returns should be the watchwords for the exploration and production industry, management teams have been told, and many of them have responded. Since the shale oil industry was born at the end of the 2000s, it has been characterised by a debt-fuelled pursuit of growth at any price. But helped by the rise in oil prices since last year, many US exploration and production companies are on course to make enough cash from operations to cover their capital spending.
FT 1st April 2018 read more »