19 US Shale Areas That Are Suddenly Endangered, "The Shale Revolution Doesn't Work At $80"

Tyler Durden's picture

Despite the constant blather that lower oil prices are "unequivocally good" for America, we suspect companies working and people living these 19 Shale regions will have a different perspective...


Drilling for oil in 19 shale regions loses money at $75 a barrel, according to calculations by Bloomberg New Energy Finance. Those areas pumped about 413,000 barrels a day, according to the latest data available from Drillinginfo Inc. and company presentations.


“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke,” said Daniel Dicker, president of MercBloc Wealth Management Solutions with 25 years’ experience trading crude on the New York Mercantile Exchange. “The shale revolution doesn’t work at $80, period.”

Source: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ZippyBananaPants's picture

We endangered some folks

Big Corked Boots's picture

Someone needs to do a data mashup on this - the red/blue voting records overlaid on the map. I bet it would be very telling. 

hedgeless_horseman's picture



We manipulate some markets.

Jeffrey Skillling is doing hard time for Enron doing the exact same thing that our government now does every single day...manipulate the energy market.

disabledvet's picture

Too funny. "But we've doubled the price of nat gas and screwed everybody including theMarine Corps! What's the problem?"

Headbanger's picture

So is oil crashing the long awaited Black Swan!?

Hey.. It's even the right color!

Renewable Life's picture

Oil at $75!!!

This bitch is going to $40, because that's what the House of Saud wants and they are financially insulated to that price!

That will destroy all the competition and there enemies all in one swoop, so if you think the shit is getting serious at $80, man you haven't seen pain yet!!

I'm going to but myself a really cheap jet ski and fishing boat from Texas next year, that's for sure:)

Buck Johnson's picture

Our own producers can't survive at 40 dollars a barrel.  They are doing everything they can to hurt russia, but I think they are playing a dangeorus game.


Moonrajah's picture

Oil at 40USD for a prolonged period of time?

Uh-oh, I see a group of peaceful young protesters on the streets of Riyadh protesting against the oppressive, tyrannical and totaly undemocratic (not cool!) House of Saud. And, yeah, Vicky will be there handing her home-made cookies left and right.

SelfGov's picture

The Black Swan is one you didn't see coming.

The peak oil crowd has been bubbling over about the shale bubble since the boom began.

So Close's picture

I drill in the eagleford and permian.  Those numbers are bullshit.

So Close's picture

Meanwhile... back in reality....  Triple digit returns at $80 WTI..... 10% at 40 bucks a barrel.  https://www.linkedin.com/pulse/article/20141124234334-79760909-eog-plans...

Carpenter1's picture

How perfect it would be if "The Shale Oil Miracle" bursted "The Recovery."



jcaz's picture

Not so hard- he's doing his time at an Air Force base in a warm-ish Alabama minimum security country club.  He'll gets out in 2 years,  with his offshore accounts intact......  Hell,  they lopped off 10 years of his sentence for bothering to show up at all.....

DJ Happy Ending's picture

Oil and gold prices falling is part of an economic war against Russia. No coincidence this started happening after Ukraine flared up.

bid the soldiers shoot's picture

I wouldn't say November is right after February

Yen Cross's picture

  You know ' h_h' it's not rocket science what these clowns are doing... When you have unlimited access to liquidity you could be an 8 year old riding around in a wheelchair yelling  " Timmah- Timmah" and still make money.

DaveyJones's picture

along with every other

just another collapsing empire trying financial tricks to hide what the world already knows  

localsavage's picture

I bet that they would be fine at $60 if they didn't spend money like idiots because oil was $100 and they are in a rush to get it out of the ground.

sun tzu's picture

The wells that are already producing will continue to produce just fine. The capex was already spent and stopping now would mean the lenders won't get paid. The loans will be renegotiated or the debt holders will take over. They're not going to shut them down. The problem is no new projects, which will hurt all the oil service and equipment companies and construction industry like CAT. 

post turtle saver's picture

arms dealers don't care who wins the war, they just care when the war stops

Ruffmuff's picture

Ya can't have winners without a few losers. Tuff shit.

McMolotov's picture

I'm sure they'll be comforted by their participation trophies AKA debt obligations.

localsavage's picture

Those at the top already were rewarded well through salaries and bonuses.  The debt is left to all of the small suppliers that gave them credit.

svayambhu108's picture

We, that's all falks

kowalli's picture

Shale boom

shale bust

Bell's 2 hearted's picture

the coming layoffs in the energy and automotive sector ... will be messy

Skateboarder's picture

The automotive layoffs will start as soon as they run out of empty parking lots to put the new cars in.

813kml's picture

They should start parking them in Mexico as a convenience for when the world turns Mad Max.

sun tzu's picture

I wonder how many of those roughnecks went out and bought a $50K truck when they got the $30/hr job on the rigs. As the job market gets worse on the rigs, the pay will drop to $25 then $20. Then you have 5 million new illegals who can now legally work. Why pay an American $20 when you can pay an illegal $15?

givenoquarter's picture

You nailed it!!! Living in the godforsaken cesspool that is Midland Texas during the 80s, I remember the line of trucks, motorcycles, RVs, etc. along Wadley Avenue. All for sale due to the owners no longer making the big bucks working on the rigs. They have managed to work themselves into a deeper hole this time with even more mcmansion communities and everyone thinking the money will last forever. 

It is already starting to hit them. The best business to own in Midland right now is a pawn shop, car title loan place or a payday loan joint. 

That place has all the ignorance of a small town and none of the charm. 

Yen Cross's picture

    I don't think $150.00  40" FLAT SCREEN TV's are going to save Q-4.

sun tzu's picture

The lame stream financial talking heads will continue with their lies. I've read a dozen articles claiming sales and profits are up when in reality both the top and bottom lines were down for a vast majority of companies that reported. The only thing that went up was EPS due to share repurchases. There are also dozens of articles claming that corporate balance sheets have been fixed and debt is lower now than before the crash. Another complete lie as the majority of companies borrowed money or emptied their bank accounts for the share repurchases. 

Yen Cross's picture

  I agree whole heartedly with your comment.

Bankster Kibble's picture

And the biggest sellers back to the companies were their own officers.  Insider selling WAYYYYY up.

One And Only's picture

Bottled water is still more expensive than oil and water falls from the sky for free.

Jonathan Equine Phallus's picture

can you imagine people in NYC paying to drink bottled water, from fucking Fiji, that is in terms of fecal count, likely worse than NYC tapwater?


... no need to imagine, friend - that's the modern quasi-free market - no government interfuckingventionism, just getting people to believe it makes sense to pay a lot for what they could have for free or near free...




Shipping water in 20 oz bottles from fucing Fiji to the east coast of the US is anything but "economical."

Skateboarder's picture

The real atrocity is not shipping 20oz water bottles from Fiji. You gotta remember - they ship empty water bottles to Fiji to get filled up. Empty fucking water bottles...

gonetogalt's picture

Na, it's really simple to 'inflate' a water bottle from the blank plastic slugs, (can't remember the actual name for the things), anyway, it's done at the bottling plant.

One And Only's picture

All I know is that I purchased 2 - 16.9 ounce bottles of water at the gas station, cost = $2.50; gas where I live = $2.49 per gallon. 

The two bottles I purchased were 16.9 ounces each so 34 ounces. There are 128 ounces in a gallon. 

So yeah...bottled water is fracking expensive. 

The Shape's picture

Gas is generally the cheapest thing you can buy at a gas station.

i_call_you_my_base's picture

I once got five days of diahrrea from drinking the water in fiji.

walküre's picture

Folk who pay extra to drink imported water from places like Fiji make up for it by reducing their carbon footprint with a Prius.

One And Only's picture

Maybe that's why everyone I've met from CA seems to have a learning disability.

Yen Cross's picture

   That's unfortunate. I was born and raised in California and agree there's a lot of fruits and nuts.

   There's also some great enclaves of sanity. ;-) Albeit I only spend about 1/2 my time there nowadays.

A Lunatic's picture

Perhaps your learning disability has somehow impaired your discernment, lol......

HowardBeale's picture

"...lot of fruits and nuts."

And don't forget the flakes. I teach there (here); and there are seniors in high school that don't know the multiplication facts. Multiply or divide fractions? Are you fucking kidding...

But of course you can't say anything aloud about the facts of the situation in front of anyone in administration: "There are just a few gaps in their knowledge. They can all go to Harvard. You are now on notice for insubordination!"


Karaio's picture

Bottled water is more expensive because it must first fracking in groundwater.