Tag Archives: price collapse

Falling oil prices could scupper UK shale production

Last Tuesday the share price of Chesapeake Energy, one of the leading US shale oil producers, fell 29% in a single day.  With internationally traded Brent Crude now trading at below $88 a barrel, a 4-year low and down from $100 only a few weeks ago, and the US benachmark West Texas Intermediate at below $85, down from over $107 in June, the fabled miracle of US shale is facing a near-death experience.   The oil consultancies estimate that US shale production will break even at $75 a barrel, so there is still some leeway for survival.    But the impact of tensions over Ukraine and the gathering conflagration in the Middle East, plus above all the global market fears of secular stagnation kiboshing the world recovery from lengthy recession, are putting the market for unconventional energy production under strain as never before.
Read more   “Falling oil prices could scupper UK shale production” »