US shale oil hitting the skids, page-43

I reckon DLS will 'make it to the other side'. From WSJ:

U.S. energy companies have defied financial gravity for more than a year, borrowing and spending billions of dollars to pump oil, even as crude prices plummeted. Until now.
The oil patch is expected to finally face a financial reckoning, experts say, with carnage occurring as early as this month. One trigger: Smaller drillers are bracing for cuts to their credit lines in October as banks re-evaluate how much energy companies’ oil and gas properties are worth. But with oil trading below $45 a barrel, bigger oil outfits are struggling to stay profitable, too.
Some smaller companies are already negotiating with their lenders, dumping assets at distress-sale prices and delaying payments to vendors as they try to preserve cash.
“With eight bankruptcies already announced this year, weaker producers could live or die by the whims of capital providers,” Citi analysts wrote recently, predicting that banks will reduce borrowing bases by as much as 15%.
If banks make cuts of this magnitude, some $10 billion of liquidity could dry up, according to a Wall Street Journal analysis of securities filings by 75 exploration and production companies.
Jim Flores, vice chairman of Freeport-McMoran Inc., which pumps oil in the Gulf of Mexico, explained the industry’s conundrum this way: “It’s raining and it’s going to rain for a long time. We’re all going to get wet. A few people are going to drown. You just have to make it to the other side.”

http://www.wsj.com/articles/oil-patch-braces-for-financial-reckoning-1442274651