Oil giants unlikely to bail out independent drillers in the Permian
That will be good for shale as a whole. Too many opportunists have kicked off shale acreage not with the aim of producing competitive crude or gas but rather in order to be bought out by a major that has forgotten to bring the pocket calculator. Its time that some of them bite the dust. It’s a bit like a tree where the old, dead branches are cut out in order to give the strong ones better growth chances. Just like in LNG, shale does not need excitement and hype. It needs boring, calm and reliable.
Oil giants probably won’t be buying up the Permian basin’s struggling independent drillers any time soon.
