How is the US shale industry adjusting to the rapid decrease in oil prices?

Given their recent years of easy credit and higher oil prices, US shale companies may struggle to adapt to the fall in oil prices seen over the past six months, says Jonathan Waghorn, co-manager of the Guinness Global Energy fund

Over the last few weeks, we have been busy digesting energy companies' results, which have been pretty unexciting (and reflect a largely irrelevant operating environment of $70 to $80/barrel oil prices). The main focus now is on analysing corporate budgets and projected 2015 production levels. Our biggest focus has been on North American exploration and production (E&P) companies, to understand how they are adjusting to $50 to $60/barrel oil prices. It is clear the brakes are on for the North American E&P industry. Oil and gas capex in 2015 is likely to fall 40% versus 2014, and oil prod...