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 […]

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

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 […]

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

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

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

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……

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

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.

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

The Gas Fracking Treadmill: No Technology Miracle Here—Just Economics, Stupid!

This winter, polar vortices blew across the land and hit the price of natural gas and sent it into dizzying spikes and plunges, aggravating head fakes, and whiplash-inducing turnarounds. But now the winter is petering out, and we’re left with a v…

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

Shale Drilling Slump Exposes US Manufacturing’s Achilles Heel—-Oil Production Is Now Mfg-Intensive

Slowing shale-drilling activity is the latest damper on U.S. manufacturers that had come to rely on a booming domestic energy market. Advances in fracking and drilling transformed global energy markets over the past decade, raising U.S. oil-and-gas production to record levels. That has created big business for American factories supplying drillers with cranes, engines and […]

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

Not Mueller Time: Hey, MSM, This Dud’s For You!

Now that the giant Mueller Nothingburger (with a side of crow-flavored fries, per Jim Kunstler) has been officially delivered unto the mainstream media’s wailing and gnashing of teeth, the essence of the matter should be obvious: To wit, the RussiaGate Collusion story was always way above the pay grade of the legal sleuths and gunslingers who wasted $25 million on it—and […]

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

Canary In The Shale Patch—-Wall Street Losing Interest In Perpetual Red Ink

The once-powerful partnership between fracking companies and Wall Street is fraying as the industry struggles to attract investors after nearly a decade of losing money. Frequent infusions of Wall Street capital have sustained the U.S. shale boom. But that largess is running out. New bond and equity deals have dwindled to the lowest level since […]

To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.