 "oil, petrol, gas, production, company")
The falling demand of crude oil in the US market will adversely impact investments made by Indian companies in the shale business there. American refiners closed some of their production, leading to futures trade benchmarked to the West Texas Intermediate (WTI) going negative on Monday.
Though WTI recovered, investment in alternative fuels like shale has become unviable. For RIL, its investment in US shale is providing it negative returns on equity. The average realisation for RIL’s shale investment had fallen to $2.71 for a thousand cubic feet equivalent of shale production. Besides RIL, GAIL, too, has invested in shale gas
