The Great American Shale Oil & Gas Bust: Fracking Gushes Bankruptcies, Defaulted Debt, and Worthless Shares

The debt involved in these bankruptcies in 2019 doubled from 2018 to $35 billion. This pushed the total debt listed in these bankruptcy filings since 2015 to $207 billion. The chart below shows the cumulative total debt involved in these bankruptcies since

The debt involved in these bankruptcies in 2019 doubled from 2018 to $35 billion. This pushed the total debt listed in these bankruptcy filings since 2015 to $207 billion. The chart below shows the cumulative total debt involved in these bankruptcies since 2015.

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https://wolfstreet.com/2020/01/22/the-great-american-shale-oil-gas-bust-fracking-gushes-bankruptcies-defaulted-debt-and-worthless-shares/

 

Fracking Blows Up Investors Again: Phase 2 of the Great American Shale Oil & Gas Bust

And it’s brutal on investors at prevailing prices. The industry has been cash-flow negative from get-go. The high prices of oil and gas the industry needs to be cash-flow positive are being prevented by prolific shale oil and gas production. Executive compensation packages have been self-designed to reward richly any increases in production, hence no-matter-what increases in production. And investors who believed the industry’s ceaseless hype are now grappling with reality – that their money was drilled into the ground and is gone.

 

 

 

 

 

 

https://wolfstreet.com/2019/11/23/fracking-blows-up-again-phase-2-of-the-great-american-shale-oil-gas-bust/

 

Shale Pioneer: Fracking Is An “Unmitigated Disaster”

He did not pull any punches. “While hundreds of billions of dollars of benefits have accrued to hundreds of millions of people, the amount of shareholder value destruction registers in the hundreds of billions of dollars,” he said. “The industry is self-destructive.”

 

 

 

 

 

 

 

 

https://oilprice.com/Energy/Energy-General/Shale-Pioneer-Fracking-is-an-Unmitigated-Disaster.html

Wall Street Hits A Dry Hole In The Shale Patch: Debt Is Tearing up the Fracking Revolution

Time and again, despite the collapsed prices of oil and gas, the players in the shale revolution have gotten more funding from Wall Street, whose ZIRP-blinded clients kept gobbling up the newly issued junk bonds, leveraged loans, and shares, taking on huge risks and hoping to make a little extra money in a Fed-laid minefield where all decent assets are way overpriced...... Login or Join Now To Read More

Fracking: Technological Miracle or Cheap Money Malinvestment?

I’m no Austrian but the concept of malinvestment would seem to apply to shale oil and gas if it applies to anything. It was produced by money illusion, faulty monetary policy and it will end as all booms do – in bust. The implications of that are greater than most people believe. Just as they thought sub-prime real estate loans would be contained so they believe that the fallout from the shale bust will be confined to the oil industry. I have serious doubts about that and you should too. Login or Join Now To Read More

The Error Of Keynesian Central Banking In One Paragraph

We might as well repeat our mantra: The problem with runaway government spending, soaring public and private debt, insensible speculation in the financial markets, egregious redistribution of wealth to the tippy-top of the economic ladder and flagging living standards among the wage-earning classes is not simply the miserable outcome of today’s faux elections between the […]
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Kamala Goes Vacant, Vacuous, Vapid and Void

We didn’t need an ambien to fall quickly into a deep sleep last night. Kamala was more than adequate for the job. After the in-the-tankers at CNN allocated 23 minutes of their 41 minute show to ads, campaign style video backgrounders, blather by the hostess and several opportunities for VP Fido to wag his tongue […]
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The Trump/Harris Race To The Bottom Of The Economic Policy Dumpster, Part 2

Neither of the presidential candidates nor their advisors and spinmeisters have ever seen the chart below. Accordingly, they have no clue that the 29% rise in the CPI since January 2017 came from the nation’s central bank, not price gouging by grocery stores (Harris) or too little fracking (Trump). You cannot get more proof in […]
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