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NuStar Energy guests tour the newly expanded crude dock at the Port of Corpus Christi, Texas, April 10, 2014. In the foreground, a seagoing barge is moored while being loaded with crude oil from the Eagle Ford Shale formation.
NuStar Energy guests tour the newly expanded crude dock at the Port of Corpus Christi, Texas, April 10, 2014. In the foreground, a seagoing barge is moored while being loaded with crude oil from the Eagle Ford Shale formation.
(Darren Abate/Reuters)

Energy borrowing booms in U.S., sparks new lending guidelines

A boom in lending to energy companies in the United States has the country’s banking regulator worried that the meteoric rise will lead to loose underwriting standards.

Because the U.S. energy sector has exploded in recent years, driven by shale oil and gas production, banks are piling into the market. Heavyweights such as Bank of America Corp. and JPMorgan Chase & Co. have long lent to energy companies, and now their rivals are bulking up, with Associated Banc-Corp more than doubling its oil and gas portfolio in 2013 and Wells Fargo & Co. buying BNP Paribas SA’s energy lending business in 2012.