The Wall Street Journal reported that banks are tightening requirements on revolving letters of credit to shale companies due to the lower than predicted production.
According to the Journal, the tightening financial pressure on shale producers is one of the reasons many are facing a reckoning going into next year.
The Journal added pressure is increasing for small and midsize shale producers, including many whose wells aren’t producing as much oil and gas as they had projected to lenders and investors.
