Shale decline inevitable as oil prices crash

The US shale industry continues to show signs of slowing down

The US shale industry continues to show signs of slowing down, with production declining in major shale basins outside of the Permian.

Financing stress has plagued the shale sector for quite some time, but investors continue to bail on oil and gas stocks. The FT points out that the energy sector is now underperforming the S&P 500 “by the biggest margin since the Japanese attack on Pearl Harbor in December 1941.” In other words, it has been nearly 80 years since US oil and gas stocks have performed so badly relative to the rest of the market.

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