Abstract
Low oil prices have led to CAPEX cuts across the world and especially in the US. We have examined a sample of US sub-investment grade oil and gas producers to assess the risk to production levels of a prolonged period of low oil prices. We assessed their hedging books, production levels and CAPEX cuts as announced in their SEC 10-Q filings in our analysis. From our analysis up to 1mn b/d of US production could be at risk in 2016, should present market conditions continue. However as long as oil prices remain above operational cost of production, oil output from producing wells is unlikely to be impacted.
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