January 25, 2016

WINNING THE WOT:

Saudis 'will not destroy the US shale industry' (Ambrose Evans-Pritchard, 24 Jan 2016, The Telegraph)

Hedge funds and private equity groups armed with $60bn of ready cash are ready to snap up the assets of bankrupt US shale drillers, almost guaranteeing that America's tight oil production will rebound once prices start to recover.

Daniel Yergin, founder of IHS Cambridge Energy Research Associates, said it is impossible for OPEC to knock out the US shale industry though a war of attrition even if it wants to, and even if large numbers of frackers fall by the wayside over coming months.

Mr Yergin said groups with deep pockets such as Blackstone and Carlyle will take over the infrastructure when the distressed assets are cheap enough, and bide their time until the oil cycle turns.

"The management may change and the companies may change but the resources will still be there," he told the Daily Telegraph.

Posted by at January 25, 2016 7:15 PM

  

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