A recent Jadwa Investment report found that there will not be a collapse in shale oil production as a period of sector consolidation, through global integrated oil companies and private equity, ensures that shale oil remains a key player in the
global oil market going forward.
The report, which follows up on a comprehensive analysis published by Jadwa on the US tight/shale oil back in December 2013, also finds that sustained drops in production are expected as oil hedges expire, financing from secured lending is tightened and the high yield debt market becomes too expensive.
“Although the fight for market share will lead to lower short term oil revenue, Saudi Arabia is likely to be the main beneficiary when global oil markets become tighter and prices rebound by 2020,” Jadwa Investment writes in the report.
