The U.S. oil and gas sector is recovering from last year’s market slump. But unlike the previous boom-and-bust cycles, the industry has held off on boosting production and has focused on strengthening balance sheets, repaying loans, and rewarding shareholders. As a result of the rallying commodity prices this year, and most of all, the discipline in capital spending, the U.S. shale patch is now financially stronger. Bankruptcies have been fewer and far apart in recent months, and the energy loan default rate has dropped to the lowest level since the oil market crashed in March and April last year. In addition, low interest rates have prompted many U.S. oil and gas firms to raise new debt, most of which goes to repaying existing liabilities, not to drilling more wells. U.S. Energy Defaults Drop Significantly One indicator shows that the credit quality of the loans and bonds in the U.S. […]