‘Rocks Don’t Go Bankrupt:’ Experts Say Shale Will Rise Again

‘Rocks Don’t Go Bankrupt:’ Experts Say Shale Will Rise Again

As many as 70% of the 6,000 shale drillers may go bankrupt, and one-third of shale-patch workers are expected to lose their jobs.. "Companies go bankrupt, but rocks don't go bankrupt," Yergin said in an interview. ". The weakest companies "will go into stronger hands," said Vincent G. Piazza, BI's senior oil analyst. ". The industry is going to be in a lot better shape than in 2014-2016.. The chairman of global energy consultant FGE said he also expects the price squeeze to force explorers to become more efficient and cost-competitive.. The buy-and-flip model that underpinned their foray into shale has disappeared, forcing those firms to become oilfield operators, which in turn means tapping their own credit facilities, said Ian Rainbolt, vice president of finance at Warwick Energy Group, the biggest owner of non-operated U.S. shale assets.. "The market is going to be out of balance for quite some time," Morris said.. Yergin, the confidante of oil ministers and chief executives, sees the threshold for reinvigorating shale between $50 and $60 a barrel.. Unlike the so-called conventional fields in Saudi Arabia and Russia, North American shale is rock so dense that it doesn't degrade or collapse