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 […]
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 […]
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
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……
Fracking is its own worst enemy.
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.
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…
While we debunked Joe Biden’s inflation-fighting plan pretty thoroughly on Monday, there is actually another important subtext to the story. In a word, the whole global climate change and green energy crusade is the ultimate cause of the blistering energy inflation that is now roiling the entire world economy and threatening to incite a vicious […]
Goodness me, even the Wall Street Journal is catching on. In a piece about the inflationary rebound theory of a former UK central banker named Charles Goodhart, it actually tees-up the possibility of high inflation for a decade or longer due to an adverse, epochal shift in the global labor supply. He argued that the […]
Goodness me, even the Wall Street Journal is catching on. In a piece about the inflationary rebound theory of a former UK central banker named Charles Goodhart, it actually tees-up the possibility of high inflation for a decade or longer due to an adverse, epochal shift in the global labor supply. He argued that the […]
