Covid-19 has created challenging conditions for global energy markets, and the US shale industry is facing “a great compression” that will result in huge losses in the first half of this year, accounting firm Deloitte says.
Although shale oil production has shown tremendous growth over the past five years, it has failed to make money for the industry in aggregate. Over the last decade, the once booming sector faced nearly 200 bankruptcies, registered “net negative free cash flows of $300 billion, impaired more than $450 billion of invested capital,” Deloitte said in its report.
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