Big Shale Borrowers on Fast Track to Junk

The shale industry is full of zombies. Lots of companies that will never get out of debt or never cut it into profitability for a whole host of reasons. It is also peppered with some really competitive, slim and mean outfits that are able to withstand most beatings. If low prices remain for a little while all this does is to cull the zombies and liberate capital and market for the healthy ones to give them a further boost. Russia wants to kill shale – they just breed an even bigger, meaner monster. Sometimes it’s better not to wake the dogs.

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