Strategic Financial Models for Resilience in Oil & Gas: Lessons from US Shale and Implications for Indian Oil Companies

Vikas A. Sahu

Abstract: The oil and gas sector is characterized by high capital intensity, cyclical price volatility, and increasing exposure to energy transition pressures. The collapse and recovery cycles of the U.S. shale industry illustrate both the strengths and vulnerabilities of financing models in hydrocarbon development. This paper analyzes strategic financial approaches used in U.S. shale - including reserves-based lending, bond issuances, hedging strategies, joint ventures, and asset divestitures - and evaluates their effectiveness in managing risk. It then considers the applicability of these models to Indian oil and gas companies, which operate under state influence, mixed ownership structures, and unique capital market conditions. Drawing on case studies of shale operators and lessons from multi-billion-dollar transactions, the paper develops a comparative framework for financial resilience. It concludes by proposing models that Indian companies can adopt to optimize capital structures, diversify financing sources, and future-proof their portfolios in an era of accelerating energy transition.

Keywords: Financial Resilience, U.S. Shale, Indian Oil Companies, Reserves-Based Lending (RBL), Hedging Strategies, Energy Transition

How to Cite?: Vikas A. Sahu, "Strategic Financial Models for Resilience in Oil & Gas: Lessons from US Shale and Implications for Indian Oil Companies", Volume 14 Issue 12, December 2025, International Journal of Science and Research (IJSR), Pages: 679-681, https://www.ijsr.net/getabstract.php?paperid=SR251207004613, DOI: https://dx.doi.org/10.21275/SR251207004613