The U.S. shale industry continues to show signs of slowing down, with production declining in major shale basins outside of the Permian. Financing stress has plagued the shale sector for quite some time, but investors continue to bail on oil and gas stocks. The FT points out that the energy sector is now underperforming the S&P 500 “by the biggest margin since the Japanese attack on Pearl Harbor in December 1941.” In other words, it has been nearly 80 years since U.S. oil and gas stocks have performed so badly relative to the rest of the market. The pressure is starting to have an impact on drilling and production. The latest EIA Drilling Productivity Report shows that production in all major shale basins outside of the Permian have started to decline, and even the Permian’s expected growth for March is a fraction of the growth rates seen during the […]