- U.S. oil producers are about to see their credit lines shrink, and a new survey by the Haynes and Boone law firm predicts nearly 80% of oil and gas producers will see a reduction in the maximum amount they can borrow with credit lines cut by an average of 39%.
- Whiting Petroleum (NYSE:WLL), for example, may see the maximum amount it can charge on its credit line cut to $3.75B from $4.5B, CEO James Volker said recently.
- Lenders are using $48/bbl to value assets in Q3, down from $77 at the end of last year, according to a quarterly bank survey from Macquarie, and reserve growth has slowed because companies are spending less on drilling.
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXJ, FIF, NDP, RYE, FXN, DDG