Thread by @TXsharon

1/5 WSJ Today:

Banks that helped fuel the #fracking boom begin to tighten revolving lines of credit.

Large #financial institutions are likely to decrease future loans to shale #oilandgas companies.

wsj.com/articles/banks…

2/5 Small and midsize #fracking companies may be forced out of business, and banks fear #oilandgas assets may not cover loans.

JPMorgan has $44 billion in oil and gas loans, Capital One has $3 billion.

3/5 "Energy companies accounted for > 90% of defaults on corporate debt in the third quarter"

Over 30 oil-company bankruptcies in 2019, exceeding the number in 2018 and 2017.

E&P companies are carrying > $100 billion in debt

4/5 "Bank lending has slowed across the board in the country’s hottest drilling region, the #Permian basin in West #Texas and #NewMexico."

Without new cash infusions, #fracking companies may be unable to drill their undeveloped reserves

#KeepItInTheGround

5/5 Naturally, #oilandgas companies are lobbying the Security and Exchange Commission to change the reserves reporting rules.

WSJ reporting wsj.com/articles/banks…