Sinking profits may finally be about to bite shale producers in basins across the country as extraction of oil and gas has started falling below expectations while also becoming unsustainably expensive in this environment of low energy prices. Red ink has long been a problem for these companies, but the patience of investors is running thinner than ever before and even some of the leading executives in the industry are signaling the necessity of a slow in production, which could end up dragging down supply estimates into the next few years. Additionally, international factors like OPEC cuts and pricing schemes, along with geopolitical instability, remain.
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