As the oil price rises, some US shale drillers finally just about recoup the cost of their drilling

“The US shale industry has been a money pit”, the FT notes. The chart shows free cash flow per barrel produced for a sample of leading companies: EOG Resources, Pioneer Natural Resources, Devon Energy, Continental Resources and Newfield Exploration. Source: Wood Mackenzie in the FT.

These data underscore my amazement, as expressed in earlier news posts, that there is not more analysis of the deep trough of long-running debt that these companies have been accumulating, or more urgency in the reporting (at least in the mainstream media) when the debt pile is discussed. Whereas the drillers are now making a few cents on a barrel, they have been losing up to $6 a barrel.

Image: from the article

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