North American oil and gas firms cut debt by $26B since 2019
Wednesday, October 19, 2022
North American oil and gas firms have cut their total debt by a combined $26 billion since the end of of 2019, shifting from spending to increase production to maximizing shareholder returns and strengthening balances, according to OilPrice.com.
The debt reduction and refocused capital discipline at most shale firms suggest lasting gains for the credit quality of more than 60 exploration and production firms rated by Moody’s, the credit rating agency said in a report released last week.
The oil and gas industry has cut debt by 11% since the beginning of the pandemic. The 64 North American energy and production firms rated by Moody’s now have $217 billion of outstanding debt, according to the agency’s report.
Learn more: Yahoo > U.S. Shale’s Debt Detox Is A Huge Win For Shareholders
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.