It'll Take Oil Above $50 for Shale Boom, Oil Sands to Pay Off
- Moody’s report shows most producers not making enough cash
- Study used measure known as leveraged full cycle ratio
Oil Traders Prep for End of 'Lower for Longer' Era
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Shale drillers and oil sands producers have posted some healthy profits so far this year, but it’ll take oil consistently above $50 a barrel for their investments to pay off in the long run.
That’s the conclusion of a Moody’s Investors Service study of 37 exploration and production companies in the U.S. and Canada released Thursday. It’s also why legendary hedge fund manager Jim Chanos, who’s shorting shale driller Continental Resources Inc., says independent explorers have been a bad deal for shareholders.