Don’t expect the U.S. shale industry, battered by the pandemic and an oil price war earlier this year, to move into strong growth levels any time soon, says one oil expert.
“There are those who think that shale will still rise like the phoenix from the ashes like it has, in the previous downturns,” Vandana Hari, founder and CEO of Vanda Insights, told Yahoo Finance’s The First Trade.
“I think that shale has taken a really hard knock this time. It will be very hard for it to come back,” she added.
“It’s a very debt-dependent sector, unlike a lot of other oil and gas producers globally. And I think the investors have soured quite a bit on the shale sector; they’re just not going to be ready to jump back in.” said Hari.
A study by Deloitte shows when crude futures are at $35 a barrel, about 30% of