U.S. shale companies to boost spending as banks loosen purse strings
December 28, 2016
Source: Swetha Gopinath
Department: Reuters Africa
Dec 28 (Reuters) – U.S. shale drillers are set to ramp up spending on exploration and production next year as recovering oil prices prompt banks to extend credit lines for the first time in two years.
The credit increase is small, but with major oil producers worldwide aiming to hold down production in 2017, U.S.-based shale drillers are looking to boost market share to take advantage of higher prices, and greater availability of capital will make that easier.
North America-focused oil and gas producers are expected to increase capital investments by 30 percent in 2017, according to analysts at Raymond James.
A number of shale producers including Pioneer Natural Resources Co, Diamondback Energy Inc and RSP Permian Inc have forecast bigger budgets and increased output for next year.
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