Search Results for: fracking

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

Posted on by David Stockman
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 […]
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Canary In The Shale Patch—-Wall Street Losing Interest In Perpetual Red Ink

Posted on by David Stockman

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 2007. Companies raised about $22 billion from equity and debt financing in 2018, less than half the total in 2016 and almost one-third of what they raised in 2012, according to Dealogic.

 

 

 

https://www.wsj.com/articles/frackers-face-harsh-reality-as-wall-street-backs-away-11551009601?mod=hp_major_pos13

 

 

 

 

 

Hey, Mr. Trump! Tear Down That Deep State Wall…..Of Secrecy, Part 1

Posted on by David Stockman
When the Donald promised to “drain the swamp” during the 2016 election campaign—-it did sound vaguely like an attack on Big Government, and at least a directional desire to shrink the state and let free market capitalism breathe. After 22 months in office, however, the truth is patently obvious: The only Swamp that Donald Trump wants to […]
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Unhinged!

Posted on by David Stockman
It’s hard to know where to start on the topic of our title because it’s apparently becoming a nearly universal condition. For instance, we actually heard some bubblevision bobbleheads today averring that Nike’s Kaepernick Kaper makes for a wonderful opportunity to buy the resulting $4 billion dip. In other words, nothing is stupid enough to make the stock […]
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Why The Next Financial Crisis Lurks Underground—-The Debt Boom Called Shale

Posted on by David Stockman

Some of fracking’s biggest skeptics are on Wall Street. They argue that the industry’s financial foundation is unstable: Frackers haven’t proven that they can make money. “The industry has a very bad history of money going into it and never coming out,” says the hedge fund manager Jim Chanos, who founded one of the world’s largest short-selling hedge funds. The 60 biggest exploration and production firms are not generating enough cash from their operations to cover their operating and capital expenses. In aggregate, from mid-2012 to mid-2017, they had negative free cash flow of $9 billion per quarter.

 

https://www.nytimes.com/2018/09/01/opinion/the-next-financial-crisis-lurks-underground.html

 

Swan Song Of The Central Bankers, Part 5: The Flat Line Does Not Spell Recovery

Posted on by David Stockman
The punk January industrial production (IP) report brought another reminder that the Fed has stimulated nothing at all on the output/employment prong of its dual mandate. Indeed, as they celebrate a purported “mission accomplished” full employment recovery and confidently prepare to plow forward with an epochal pivot to QT (quantitative tightening), our Keynesian central bankers have remained absolutely mum on this stunning fact: To wit, there has […]
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The Great Wall Street/Washington Con Job: Part 4 Of The Recovery Which Never Happen

Posted on by David Stockman
During the last few days we have been debunking the notion that Imperial Washington's massive monetary and fiscal stimulus caused the so-called "recovery". To the contrary, it has actually poisoned the regenerative powers of American capitalism by causing capital and resources to flow out of the main street economy and into the speculative casinos of Wall Street.
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Key Industrial Indicators Say US Is In Long Term Depression

Posted on by Lee Adler
Last week we reviewed the US industrial production (IP) and saw that it contracting for more than a year. The IP indexes represent the production of factories, mines, and utilities in unit volume, not dollar sales, both by total output and output by industry. While these indexes do not represent service industries directly, they do indirectly because electric power production and distribution feeds service business. Login or Join Now To Read More

Bankruptcy Bust: How Zombie Companies Are Killing the Oil Rally

Posted on by David Stockman
Their owners may be bankrupt, but the sprawling mines of Wyoming’s Powder River Basin are still churning out coal. It is the same story in oil fields along the Gulf Coast and with shale-gas wells in the Rocky Mountains.......Energy investors have long hoped that falling prices would solve themselves by driving producers into bankruptcy and stanching the flood of excess supply. It turns out that while bankruptcy filings are up, they have barely impacted fossil-fuel markets. Login or Join Now To Read More