World Oil

(Bloomberg) –Banks are gradually offering more credit to U.S. shale oil and natural gas producers as the industry recovers from last year’s contraction and energy prices rally.

Shale drillers see more interest from banks as oil prices rally- oil and gas 360

Source: World Oil

So-called borrowing bases will increase as much as 20% during the imminent round of talks between drillers and lenders, according to most respondents in a survey conducted by law firm Haynes & Boone LLP.

The findings indicate a continued improvement after the dire conditions experienced in the oil and gas sector last year, when the pandemic and global gluts led to a slump in energy prices and prompted banks to cut back on lending.

The previous Haynes & Boone survey, published in April, indicated borrowing bases would remain flat or rise by 10%.

Lending against crude and gas reserves, a key source of capital for explorers, typically sees twice-year retederminations, in which bankers reassess their commitments.

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