A view shows Saudi Aramco's Manifa oilfield, Saudi Arabia January 22, 2015. Saudi Aramco/Handout via REUTERS
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Like cats transfixed by a pigeon, the world's bankers are quivering in anticipation of next year's initial public offering by Saudi Aramco, the state oil group.Do the US producers continue to depress oil and gas prices?International oil people believe the shale people are the spoiled children of the Federal Reserve, the US central bank, and overindulgent investors.You could even compare the cost of the capital market's subsidy of the shale industry to other US strategic assets.It may have been winter in the E&P patch after the halving of the oil price, but there has been a seemingly eternal spring in the private equity and junk-debt world.The shale companies struggling with sub-$40 or sub-$50 oil prices were also able to live off the excess inventory of drilled-but-uncompleted (DUC) wells that had built up during the boom years.Will the capital markets eventually stop subsidising shale producers?
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