U.S. Oil Debt Eases, Meaning Drillers Target Next Shale Play
- Eagle Ford, Austin Chalk acreage is in demand: Haynes & Boone
- Oil price rise leaves executives optimistic over debt
Photographer: Brittany Sowacke/Bloomberg
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U.S. oil and gas producers expect their borrowing ability to increase over the next few months, leaving them open to invest in new shale assets, particularly the Eagle Ford in Texas.
That’s the conclusion of Haynes & Boone LLP, which found that more than 80 percent of respondents predict their borrowing bases, or credit availability backed by collateral, will likely increase as banks conduct their biannual reviews. That may benefit the Eagle Ford and Austin Chalk as the “next big play,” the study said.