Shale oil firms in the U.S. will suffer in the next two years due to the dramatic fall in the price of the commodity, according to Dennis Gartman, the founder and editor of the Gartman Letter, who expects a further fall in prices in the near term.
The commodities investor has turned slightly more bearish on oil since last week, telling CNBC Tuesday that "crude oil prices haven't seen their lows yet."
"I'm afraid we're going to see demonstrably lower prices still," he said. "Demand is weak and that price is going to continue to go down more."
The U.S. has seen a revolution in gas and oil production in the U.S. with new technology unlocking new shale resources. This oil and gas boom has spurred economic activity and giving industry a competitive edge with less expensive fuel prices. However, the recent drop in prices - with Brent crude and WTI crude both down around 47 percent since mid-June - is set to impact the blossoming sector over the next two years, Gartman fears.
"There will clearly be bankruptcies," Gartman said, name checking oil production sites like the Permian Basin and the Marcellus Shale. U.S. oil production is a private-sector venture and differs wildly from the state-run companies in the Gulf states and South America.