The Shale Bust Has Arrived

1. Shale bust is here- Shale wells decline somewhere between 70 and 90 percent from their initial peak within 3 years, with the bulk of that decline coming within the first 12 months. - As a result, the pause in drilling quickly translates into U.S. oil production declines. - “We just have no new drilling and these decline curves are going to catch up,” Mark Rossano, founder and chief executive officer of private-equity firm C6 Capital Holdings LLC, told Bloomberg. “That hits really fast when you’re not looking at new production.”…