Bankers' fading fear of oil lending is boon for shale

Washington

WALL Street banks' growing optimism about the energy industry is the latest boost for US oil and natural gas producers already enjoying higher prices.

JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc said on Thursday in their first-quarter earnings results that rising oil prices have helped them free a combined US$370 million they previously set aside to cover bad loans.

If the optimism turns into an increase in lending, it would be a boon to shale firms from Texas to North Dakota that rely on borrowed money to finance their drilling and fracking. That could further accelerate US oil production, which is already expected to rise above 10 mil…