Surveys taken by consultancy, Wood Mackenzie, indicate that one third of U.S. production, excluding Alaska and Hawaii, “comes from companies that have borrowed against their oil and gas reserves.” These oil shale producers now face restructuring of their assets and ability to borrow. Jeff Nichols, a partner in the Wood Mackenzie office in Houston commented, “In the spring, it looked like the response was a 'wait and see' mentality. But with fall approaching, the 'wait and see' mentality seems to have passed and there is recognition that more action needs to be taken to reduce debt through equity investment, restructuring or even declaring bankruptcy.”
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