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The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming
"There are too many ugly balance sheets," warns one energy industry analyst, adding simply that "the group is not positioned for this downturn." While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various 'statistics' about how the down-side of low oil prices is 'contained' and the huge colossal massive tax cut means 'everything is awesome' for America, the data - and now actions - do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come...
In December we illustrated the problem names (in the publicly traded markets) among the most-levered energy companies in America...
And now, as The Wall Street Journal reports, the bankruptcies have begun as financing costs are not just prohibitive, there is no liquiidty available at any price for many...
American oil and gas companies have gone heavily into debt during the energy boom, increasing their borrowings by 55% since 2010, to almost $200 billion.
Their need to service that debt helps explain why U.S. producers plan to continue pumping oil even as crude trades for less than $50 a barrel, down 55% since last June.
But signs of strain are building in the oil patch, where revenue growth hasn’t kept pace with borrowing. On Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money and citing debt of between $10 million and $50 million. Neither the Austin-based company nor its lawyers responded to requests for comment.
Energy analysts warn defaults could be coming. “The group is not positioned for this downturn,” said Daniel Katzenberg, an analyst at Robert W. Baird & Co. “There are too many ugly balance sheets.”
...
In 2010, U.S. companies focused on producing oil and gas had $128 billion in combined total debt, according to financial data collected by S&P Capital IQ.
As of their latest quarter, such companies had $199 billion of combined total debt.
Before crude prices began falling, U.S. oil and gas producers were able to acquire leases and drill wells even if that meant outspending their incomes. Debt was used to bridge the cash shortfall so that companies could develop oil fields in Texas, North Dakota and newer locations including Colorado.
Now that is coming back to bite.
The upshot of cash conservation and higher borrowing costs will be less money spent on producing oil and natural gas. Concho Resources Inc. said late Monday that it was cutting its capital spending budget by a third, to $2 billion.
* * *
And the credit market knows it...
And here is the bankruptcy filing in question in all its glory:
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... a crude awakening ...
So I heard a local economist last night on the radio on my drive home. He was talking about how things look good for the US in 2015 as UE drops, we add jobs, cheap gas will help us, yada yada yada.
I seriously could not believe my ears. Host just kept right along tossing softballs and watching them fly over the fence.
At this point in time, with the amount of leverage everywhere (again), any contraction anywhere can really set this this implosion off.
Laughable at this point, and once again, people are seeing it bright and sunny when in fact we are on the precipice once again.
pods
I live in Texas. The Pink Slips are already out. More to come. I two months, America will feel the hurt.
Then they wll do something STUPID and demand that their Government DO something about it.
Well the plans for the Government Intervention have already been made...well before the manufactured crisis ever manifested.
Most Americans have already been feeling the hurt. But the people in the Oil Industry have not. Perhaps you have not...
Oh hell...Misery loves company. Come on in. You are invited.
Yeah, gotta admit, you're probably right about the whole govvie intervention thing.
In spite of all the anti-government sentiment down here, as soon as things go to hell, "they" will demand govvie to step in. It's quite disappointing to see.
I seriously could not believe my ears. Host just kept right along tossing softballs and watching them fly over the fence.
I seriously could not believe my TEARS.
FIFY
Hearing the same BS from 'local' econ people in my area....obviously they're missing the bigger picture.
Then again that tends to happen when all you do is pontificate from the ivory tower...
We crudely awakened some folks.
Debt was used to bridge the cash shortfall
Indeed... 1/2 T on deck to blow...
Only the first? That took longer than I expected.
I think it's starting to dawn on lenders that this isn't merely a Saudi "Flash Crash." It just took a little while for those expectations to play out, given the MSM meme of "starve Putin."
Starve Putin sounds like a lame fake excuse to me. We know Russia isn't effected nearly as much as we are supposed to believe.
The problem with a power structure that "never lets a good crisis go to waste" and is otherwise almost completely hidden from view, is that we have no f'n idea what/who is actually driving the bus here, and who is merely following the carnage trying to make some kind of lemonade out of the wreakage.
Cui bono? In this case, I'm having a hard time seeing any clear winners. . .
China is the very clear winner. I have always believed they're the ones who called the shots on this (oil price dive), has always seemed pretty damn obvious to me. They are the primary beneficiaries, and their benefit is HUGE.
It's also pretty obvious that the US can go only as far as China allows them, and that's looking more and more like just enough rope to hang themselves with.
A big devastating war must be financed. The US has lost its independence, thanks to the power of debt. Fortunately, a big devastating war is not in China's interests.
The reason people are still confused about this is because - against all evidence to the contrary - they think the US is still pulling any strings. It isn't. The US is desperately trying to claw its way out of a very quickly tightening noose of debt.
The US has no real international friends - just a dwindling list of vassals and protectorates. The fast-growing remnimbi hub list shows just how isolated they are becoming. Even the Sauds have openly deserted them now. It's amazing to me - although I suppose it's karmic justice - that anyone still thinks the US is calling the shots here. They're the ones hurting the most from the oil price dump, AND they're the ones being blamed for it. If they weren't run by a bunch of insane and senile war criminals and banksters, I'd feel sorry for them.
The oil price dive is the current phase of de-dollarisation. It is not as much an oil (and commodity) price dive, as it is a USD rise-to-nowhere. But it's read this way (a dive, and apparently only oil matters) because of its outsized and immediate impact on derivatives and US employment. So it gets a lot more attention than all the other factors of USD failure, which are also in continuing, concurrent operation.
In short, the oil price dive is a feature of USD failure, which is being co-operatively managed by much of the world and led in large part by China.
Many +s for that bit.
" If they weren't run by a bunch of insane and senile war criminals and banksters, I'd feel sorry for them."
The problem with a power structure that "never lets a good crisis go to waste" and is otherwise almost completely hidden from view, is that we have no f'n idea what/who is actually driving the bus here, and who is merely following the carnage trying to make some kind of lemonade out of the wreakage.
Cui bono? In this case, I'm having a hard time seeing any clear winners. . .
THE BANKSTERS ALWAYS WIN...regardless if you can see it...or NOT (which is what they actually prefer).
Why Are Americans Driving Straight Into The Non-Recovery (And 800 On The S&P)?http://www.zerohedge.com/news/2013-06-09/why-are-americans-driving-strai...
Then something happened.
As the chart below shows, starting in December of 2007, the date which according to the NBER is the beginning of the most recent recession (which also according to the NBER ended in June 2009) the number of miles driven flatlined and has been virtually unchanged around 3 trillion miles every year for the past five!
This, despite the US economy (GDP) supposedly rebounding in 2009 and once again at new all time highs. Maybe someone besides us has a slight problem with the chart below showing the complete break between GDP and driving habits starting in 2003, or around the time the Federal Reserve went all in to mask the collapse of the dot com bubble, by first reflating the housing bubble, and then after 2008, the central bank bubble where every single central bank has literally gone all-in on to reflate the Mother Of All Bubbles (MOAB).
Why the record disconnect?
And why instead of growing alongside the economy, as it did in the past as this year-over-year chart of miles driven shows, at least until the end of 2007, which until that point never had a year over year decline, have the driving habits of the American people - always so eager to
drive the 2 minute trip to their neighborhood retail outlet - suddenly
collapsed.
The chart below zooms into the recent history and shows that for the past year the 6 month moving trendline has been a disturbing one showing a consistent decline in the miles driven even as the economy, courtesy of the Fed's ongoing market manipulation, is said to be "recovering."
* * *
But we have saved the best for last: the chart below shows the correlation between miles driven and the S&P. Is it just us, or did something very odd happen in the late 1990s? And if the latter, is it safe to say that Bernanke has been responsible for about 50% of the upside in the Stanligrad & Poorski 500?
My bet is that miles driven since 2012 is trending down. You can only pretend you are not in a depression for finite period of time.
Exactly, you cannot have a generation of depression people without a depression.
We have been in, are still in, and will be in, a depression.
Forty years ago my mother told me that I will be on restriction for the rest of my life.
Damn it. She was right, rest her soul.
If you can keep your wick wet, you can tolerate a lot of other restrictions.
"Only the first? That took longer than I expected."
And it's privately held. I wouldn't be surprised if it takes 6 or more months for things to really shake out. Or for oil prices to go back up. Lots of swaps, collars and three way collars out there.
i am freaking shocked that they didn't ipo that pos before it went tits up.
The C suite believed the MSM hogwash also. Dumbasses abound.
The tide probably pulled-out too fast. IPOs take a bit of time.
This is great news! Wipe the slate clean, the companies can restart with no debt, and the FED bails out the banks who lost on the bankruptcy with freshly printed fiat.
What could go wrong?
This is the real issue. Yet again, will the people who deliver something of real value get fucked again while the bankers and financial fucks who create NOTHING of real value get yet another bailout and continue to live high on the hog?
tick tock motherfuckers.
Who says that the oil producers won't get bailed out along with the bankers this time? Don't tell the bankers this, but oil producers are more important than bankers.
Either way, it's all a ponzi.
Because the main prodcers and beneficiaries of oil are red states. Case closed.
You have to think this bankruptcy was part of the business plan for these companies. The drilling business has seen, for many years, and incredible boom cycle. Yet this company had as much as $50 million in debt. So when there is even a short term decline (yes, it may turn into a longer term decline) or interruption in the boom these companies cannot meet loan payments.
It used to be good business people used the good times to plan for and prepare for the downturns and bankruptcy ment going out of business. Now, gamble to the hilt, take profits out of the company and into pockets (or avoid having profits by putting revenue into pockets) and live off of credit.
Everyone is completely shale-shocked
Perhaps literally...
https://www.youtube.com/watch?v=kXbA0ojw0_w
...and yet more producers of something of real value go bankrupt, while the banks profit.
10x the derivatives and debt compared to 2008/2009.
This should get interesting, but probably irrelevant as banks (not you) still get to use "mark to fantasy" accounting.
Typical of the Third World logic of conspiracy theories that some bring to ZH.
A borrower files for bankruptcy, unable to repay loans to banks, and supposedly banks will increase profits.
There is no "mark to fantasy" when the assets sold only return 60% of loan amount.
Are you saying that we didn't bailout all the TBTF banks? LMFAO!!!!!! no conspiracy theory there, just fact.
good luck with that cognitive dissonance.
more importantly, when does my business get access to hundreds of billions at 0.25% interest?
thanks for the laugh.
I expect that a jackass laugh from you would be expected.
Please document when a creditor on that list in the bankruptcy filing gets a check from US govt. to cover the asset shortage.
Are you trying to imply that AIG didn't get a bailout, and are you trying to imply that it didn't owe Goldman Sachs a large sum of FRNs that it used that bailout money for? Are you further trying to imply that Goldman Sachs hadn't bundled up a bunch of mortgages that it knew were "shit" into MBSs, sell them to investors as the greatest thing since sliced bread, then purchase CDSs from AIG to "insure" those MBSs that they had already sold? Are you also trying to imply that the former CEO of Goldman Sachs was not the Secretary of the Treasury when a lot of this BS was going on? Because if you are, you are factually incorrect. You have a right to your own opinions, but not to your own facts.
Buy moar stawks Augustus!
Still short S&P from 900 are you?
Hedged that with Long gold at $1,800? Moar. Moar. Moar. Stack. Stack. Stack.
Silver was a sure Long winner for you from $30.
Will your truck still backup?
Like most people, you are a short term thinker. End of the year? Next five years? Pffft! You don't give a shit beyond the end of the quarter, if that.
Banks use other peoples money to make loans, (in many cases the same money is loaned out many times over), ...Bank loans money to Paul who buys 100 acres, for whatever reason Paul can't make his payments, the Bank forecloses the loan...who then owns the land??? The Bank??? or the people who's money was used to make the loan???
Banks have ZERO money loaned out, they loan out depositor money....starting to see the picture?
That's because depositor money when deposited at the bank becomes the bank's money for all intents and purposes. If you walk into a bank, take out a loan for $1000 and walk out with 10 $100 bills, is that money yours or the banks? Well, you pretty much get to do what you want with it, so it is functionally yours. When you deposit money at the bank, you are giving the bank a looan.
What is the product of a "Bank"? What do they produce? Why is there one on every corner?
You know, we have some sort of a market price now. Turns out we have been subsidizing (via high oil price) these shale companies. Am I supposed to feel sorry for them now? I don't think so.
Ok. Now people are defaulting. Maybe it's not time to BTFD
They will not only go bankrupt....but other companies will just stop new projects and cap old ones....if they are marginal producers...this industry is going to be getting a huge cut...and it will flow through our economy....just what OPEC wanted...
The idea that a flowing and producing well will be "capped" in complete nonsense.
The correct term is "shut in" but that won't happen either.
What a joke of a company, they produced less oil and gas last year than my shale well did in a couple of months. Big news, the whole shale complex is dying, oh woe is us. Gee when someone that really matters goes belly up, post it. This is worse than the automatic retard blog reposts.
Remember, it's all abount sentiment, not fundamentals. Even if a few dozen producers get whacked, it could potentially drive sentiment. Keep pumpin'!
And the market is UP. Bullish. More bankruptcy please....
Time for a government bailout. TBTP = To Big To Pump
too big too pumped
Much of that first chart is like utilities and pipelines, which is pretty different than the shale names that most people are talking about being a credit risk. It doesn't really do to just say they are "energy"
Don't bother to try to educate these DA commentators.
They all know that energy production and distribution is a scammer's business.
Just look. Dominion Resources is just another over leveraged energy producer.
Some of these commentorss have the brain capacity of a dog pecker gnat.
Saudi realises that OPEC does not now contain all the major producers.
The current stance seems to be that Saudi should cut so everyone can enjoy high oil prices with more US oil coming on line.
This doesn't work for Saudi, though it would be nice for the US .
Saudi, not having to worry about Wall Street short termism, can play the long game.
It can, and is, closing down a lot of US shale, Canada tar sands and other future projects.
But in the long term it is in everyone's interests to have some stability in oil prices.
The current strategy could be just what is needed to help the US realise that leaving oil prices to the instability of market forces is in no one’s interests.
It will also help Canada and Russia to realise the importance of working together in a Cartel to keep prices stable.
A cartel, in this case, seems a better option than turbulent markets (i.e. OPEC expands).
The over-supply is quite small and an agreed cut back by all producers could restore stability very quicly.
Or
We can go thorugh the chaos of letting the market do the job.
I vote "the market".
West Texas can play the long term game, Saudis can keep pissing up a rope, they are hurting themselves the most.
ZH has just posted a ra-ra USA post by Russel Napier that: now is the time to decouple with rest of the world; as the US has its own economic surge going for it.
Now this contrary post signifying that this is the tip of the Shale collapse iceberg, implying that the financial implications of Oil price deflation if they persist; aided and abetted by BRIC slowdown, Russia's financial and oil price implosion and EU's Grexit decadence; means that a financial tsunami is in the making all over the "drowning in debt" West.
To post TWO diametrically opposed editorials in the space of what-- an hour-- is now the hallmark of ZH pizza pie bakery.
"French fries and Shale demise and ra-ra Us forver" for all eaters of ZH pizza pies!
I feel a need to repeat that quantitative sprees of pizza posts as remeniscent of FED's QE that ZH loves to butt-bash incessantly.
Quality over quantity in ZH posts seems de rigor !
The U.S.S.A. is still a net importer of many things, the big one being oil. The U.S.S.A. needs to be very fucking careful what they wish for.
This is a time when Ideology will insert itself and exert itself... we have to be very careful about the results of letting the Banks come out on top.
- After all Bank Executives can just take their money and leave the country, they are not Patriots, and have no Ethos
- Last time we crashed we bailed out the Banks
- Last time there was little Capitalism in Bailouts (Socialism)
- Last Time the Losers were Workers, Pensions, 401Ks, Home Mortgage Holders who paid too much & Main Street
It seems like a good time to Examine our Credit & Banking System... and how Banks have Charters to Create Money out of thin air, Be in charge of the Economy, Get as big as they want (and they want), and they collect all the assets of the USA in bankruptcy & foreclosure... what do Bankers do to pay back the USA??? Where is the Value added to their Usury??
...are reminiscent...
Fuck I hate ZH bashers.......who don't even read the fucking articles! Seriously. DIAMETRICALLY OPPOSED. The first - an article from an asshat that believes the US can endure while the restof the world collapses into economic chaos certainly is not a representation or the opinion of this site - indeed we have seen a million of these articles - most recent the flip flopping of Hugh Hendry. The second a piece on oil companies lacking cash flow to service operations (and debt) - just like 2008 - who can forget what happened to Oilesco that died for exactly the same reason.
The lack of rigor (as you have so arrogantly put it), is simply your lack of ability to connect the fucking dots. As I hardly think it is ZH's resposibility to appease your pissant brain and its associated cognitive preferences.
Wax your pseudo editorial expertise (lack of it) some place else.
Jeeeezzzzzzuuuuuuusss!
thanks for stating the obvious about the posts...not the implications deeper down.
You play on the instant coffee front; I play on the roasted and percolated coffee front.
Maybe we have two different attitudes to the Neuuws, as to coffee (in my analogy only) ... you love it ephemeral, I love it more consistent.
As for ZH bashing : its not a church here nor a political party; its an exchange of people from different horizons.
Hate has no place in this dialogue.
de rigueur
thanks.
It seems to me, you are due your opinion(s). But if you feel so passionate about the mix of offers here at ZH, perhaps you submit your resume to Tyler. If he likes what he sees, maybe he makes you Asst. Editor or something. Think of the influence you could have over the supposed minds of mush who frequent this site.
I personally, can't wait.
hey, I'm flattered by your solicitation.
I comment Tyler's editorial skills but I don't pretend to be an editorialist.
Thanks but not thanks.
I prefer to be a lone rider of the lost ark.
You mean: Lost rider...... alone....... on some ark. there - fixed it for you
And it's ALL GREEN across the board. Who would have thought.
Check out some of the Canadian Juniors. Lots of them not even in operation yet and already carry large debt burdens.
Interesting how integral the word 'bank' is to the word 'bankruptcy'.... Guess who ends up owning all these drillers and their equipment 'on the cheap'...
Saw this coming a while back when John Kerry put together the Saudi deal...
http://www.globaldeflationnews.com/has-the-u-s-secret-deal-with-saudi-ar...
And one of the bank indices, BKX, down 7% in the last 3 days, and one of the weakest charts in sight, is discounting the oil defaults and the upcoming bank loan losses far better than are the sleepy, optimistic broad indices. I'll venture that BKX goes negative within hours:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=bkx&insttype=&freq=1&show=&time=7
My mistake: BKX lost its 1.3% gain and went negative in 90 minutes.
Blankfiens out talking deflation. I guess Yellen knows what to do.
Get to work!
Yes...so when does Goldman Sachs start their oil and gas division...when they buy all this up for pennies on the dollar....with someone elses sheckels of course...
An Answer to Ending QE & ZIRP.
Banksters are always a year ahead at minimum. Who is advising Saudi Arabia? You know it is Wall Street.
It is all about Monopolies. QE & ZIRP threaten to End, then we get this Wall Street Plan to Slam Oil & Petro Dollar.
Maybe Janet Yellen, Christine Laguard & WB Head, Jim Yong Kim, & BIS Head, Jaime Caruana,... have to play along with the Game. Power Play. Passive Bank Bureaucracies can only respond when there is a smarter more Dominate Force.
- Wall Street Bank Power Players take Action
- Banking Bureaucracies are passive and remain mute
That's a gonna hurt.
Gotta do what we gotta do to win the war on communism Putin
Edit: Well I have communism striked out when editing but doesn't post like that?
That's OK. I assumed you meant to put "/s" after all that. It's what we expect to think when we are fed a steady diet of CNN, et al.
In 10 minutes crude has given back all of this morning's 1.40 rise up to $49.20 and is back trading $47.77, 75c away from a new 5.5 year low:
http://www.investing.com/commodities/crude-oil-advanced-chart
Russia produces in Rubles. Will they announce higher production??? Short term pain for securing middle east customers. Interesting possibility.
So...who gets to clean up their oil field mess? The conatinment ponds? Oh, right, no one but the taxpayers....some day. Texans, do you trust your water sources in the counties?
If you look at the people elected to public office in Texas, it should be apparent that they have been drinking contaminated water for some time now.
It must be bad in Austin...
Otherwise known as "Kalifornia Colony"
Every state has shitholes.
Here it's Austin, San Antonio and south Dallas.
Shooby shooby do wop, do WAAAAAAAAAAAAAAAAAAAH!
But.. but... Obozo is tweaking Putin's nose! And the wacko environmentalists are popping the champagne corks as the evil shale producers go down. And the po-folks are saving money at the pump!
this is gonna be fun
The tribe banksters want the shale industry
something doesn't add up on the chart of ebitda and borrowed money.
for example NES, nuverra environmental services...i follow them...they only had $2 million of earnings last quarter........and they do have, for sure, $550 million in debt....at this rate they should be at the "top" of the list above chenier.
NES' total debt exceeds their annual revenue by a stretch.
............it's all worse than the chart shows for most of those companies....and by the way, would you care to buy a hotel in Williston North Dakota right now ??
Have the hookers left? "Cuz, you know...
Consolidation. You're talking about consolidation.
I see billions in government corporate handouts/bailouts coming.
Dump the loses on the taxpayer and parking profits overseas.
Rest your sphincter. Oil patch ain't TBTF and the biggies are pretty much offshore, not that we aren't into bailing out offshore entities nowadays. Isn't it a law that we only bail out offshore banksters?
Rest your sphincter. Oil patch ain't TBTF and the biggies are pretty much offshore, not that we aren't into bailing out offshore entities nowadays. Isn't it a law that we only bail out offshore banksters?
Don't ever the bullshit meme that lower O&G prices are bad for the economy. BULLSHIT! Every one of these companies that knew even the basics about this busisness should have known this has a history of happening and cut to the bone 6 months ago. Media news (propaganda) will try to sell you this crap and its just not true. This is money that flows to the consumers pocket and NOBODY in TPTB want this to happen. In Kalifornia, already the pols are adding taxes to the price of fuel in the name of a greener economy, green energy, Cap and trade credits and whatever else they can dream up in order to divert cash flow back to the coporate/government complex.
'adding taxes to the price of fuel"
That drum is being beatin on in Utah also.
I have an idea Oil & Gas Industry.. how about you try and run your business as a "Going Concern"? Rather than falling into the "The Market Will Never Go Down Again" trap over and over.
The best predictor of tomorrow's price of canned peas is today's price.
Where did you get your crystal ball?
What do you charge for one of your perfect forecasts?
Bank index BKX now in the red, losing all of its earlier 1.3% gain in 90 minutes, probably doing the best discounting of the impending oil loan default disaster:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=bkx&inst...
Saudi 2015 budget (c $240 billion of which 90% comes from oil) nearly $40 billion in deficit and is based on $60 oil (reuters). If oil around $40 this year that deficit gonna grow mightily.
Saudi rainy day wealth fund is about $750 billion. I expect they can exist for a while with a $40 billion deficit.
Then there is the increaed production option.
We grubered some frackers. Or did we frack some Grubes?
There's a company halfway down the list called "Fonestar Group"
Forestar Group: https://www.google.com/finance?cid=721234
Fonestar youtube channel
https://www.youtube.com/user/weihrauchfan1999
What can go wrong?
And the real question is why in the FUCK doesn't the government tax barrel of oil imported as opposed to the consumer at the gas pump. The former would stabilize prices so that these huge price swings stabilize whereas the latter just taps the consumer at a point where they are already tapped out. The downside is the tax income would just disappear into the government/pol complex never to be seen again and would be considered "protectionism" well "yeah" duh.
NG should get a lift, at least back to par with crude. after Obama and his glorified golf cart transportation revolution are out of office then real solutions present themselves
NG will be there when the Saudis salt water to oil ratio finally goes through the roof. Let them pump and try to maintain market share while depleting a finite resource. Not a very bright market plan and they damn sure deserve the reperussions and end game of such bad decision. Bottom line is their oil supremacy is over with, and they're just rearranging chairs on the Titanic as to how it plays out from here. Screw them and the camel they fucked on the way in.
Nuclear is based on lies out of the gate, here is an entertaining youtube showing 93 lies of nuke
http://nukeprofessional.blogsp...
If someone was shorting oil they kept it a big secret. Most likely volumes collapsed and a price war has broken out. All the numbers are faked. Only some of the oil producers would have know what was going on.
WBH Bankrupted?
Meh?
I like oil. I like things made from it...like plastics and gasoline.
Mortgage is my only debt...and I hate it.
So why is it okay for energy companies to go bankrupt but not okay for finance companies?
Who's in your tribe?
This is a pissing contest to get the small kids out of the wading pool.
My fracking companies will buy their assets for nothing. IF they even have proven reserves. This is no Lehman.
Oh the horror! There is blood in the water, smaller producers will get bought up if they have proven reserves. Many will have no other option then to sell out or produce to service debt. Some worry on the ground, but we have seen this before.
I thought these companies bought derivative insurance from banks backed by taxpayer to hedge against the falling price of oil?
Beautiful. New owners will be debt free
Capitalism at work
"Beautiful. New owners will be debt free
Capitalism at work "
Everyone is gonna pay cash this time and not borrow to buy the land, mineral rights, equipment, pay people, etc.?
This news made me frac in my pants.
It's a miracle!
Bankrupt??
Why not, what's to lose, since overpaid executivesby now have all of their wages and perks safely banked away??
Every time a driller shoots himself, a hippie gets his wings.
Boom and bust in the O&G industry is nothing new, nothing new at all. Leveraged production is nothing new either, and unless only the largest ExxonMobils are to be in business, leveraged production is the only way.
Consolidation in the shale patch....not the end of the world by far.Displaced folk wont have to pay as much to get to new job...cheap gas...silver lining
What job?
oh shit...correction "theoretical job"
Shale oil bankruptcies ?
Bullish.
Supply problem fixed, said everyone on marketwatch.
It's awfully bad for them folks in Texas I hear but a guy on the radio said today oil may drop below $30 before bouncing back up to $50 but he said that's where he thnks it will saty ... in the $50 range after this year. He also said that over 50% of the Houston economy is directly in energy and another 30% related to it.
He said about 30% of Houston's economy is now based on the health care sector. I have to admit, that medical area is like a city unto its own down there when I visited a friend at MD Anderson. All ultra modern and stuff. Nice place ... if you have to get sick.
Who knows?
FOR EASY MONEY, the owners need to travel to Iraq where tractor-trailers filled with pallets of $100 bills were traveling around...I can just imagine a war lord pulling up to a bank - "Count it and deposit it in my account..." The Crazy Days show hasn't ended, hell the curtain is barely one inch off the floor...
“Is it possible for an international organization to deliberately maneuver nations into a world war? The answer again must be
in the affirmative. What type of organization would be capable of succeeding in such an action? Only an organization devoid of
any allegiance whatever to any nation and whose objectives exclude the interests of the organized states of the world. Its particular
interests and objectives must be served in some manner by the devastating aftermath of war. It must have exhausted its efforts in the fields of propaganda and diplomacy. Such an organization must be judged by men who are international in thought and action. They must be men who are incurably hostile to the world and who are convinced that the world is hostile to them and all they represent. They must, of necessity, believe themselves superior to all others and have an abiding faith that their objectives are sacred. They must be convinced that the end thoroughly justifies the means. They must be possessed of unlimited funds and supported by innumerable loyal agents. They must have access to the ears of the mighty and their agents must have the confidence of the powerful in every important post throughout the world. They must be able to manipulate the mysteries of finance and control the minds and actions of people everywhere. They must be in control of the means of communication and dominate the propaganda media throughout the world. And, finally, they must have
a well conceived plan that allows for errors and failures; a plan that reckons the possibility of road-blocks and delays, but charts
the methods of demolition where possible and the shortest detours where other devices fail. They must be men who are endowed with
oriental patience as well as oriental cunning; men who might spend a life-time picking a lock so that their successors might enter the door.” United States Senator Jack B. Tenney in 1953
His booklet “Zion’s Trojan Horse” (Approx. 75 pages) is well researched and sourced. You can read it or download for free. https://archive.org/details/ZionsTrojanHorse
If you think that “evil Nazis” somehow now run America and control the world, then I especially recommend reading this book. Stop being dupes, do your own research, and stop giving your permission for your own enslavement, and that of future generations of humanity.
Ruled by Aliens
https://www.youtube.com/playlist?list=PLyaRFwvaIcHB-filrXrl5O1sRAkWCiyMT
WBH Energy may be the first, but it won't be the last. Hundreds to go...
http://www.globaldeflationnews.com/just-give-us-the-crude-say-venezuelas...
No moar money for you little grasshopper.... All your money are belong to the Largest Grasshoppers now.
Hope they all crash and burn
I remember the 1970's oil embargo by the OPEC-ers: huge increase in gas price, shortages, lines, etc. I think the US should now return the favor and refuse to import ME oil and support domestic producers. The $$$$ generated would produce jobs and the dollars would be turned over and over in US economy to buy goods, services, equipment-rinse, repeat.
We (US) have to be the dumbest fucks ever-I see posters and even Tyler seemingly gleeful at the collapse of the US oil production (at the hands of the Saudi's), and ever eager to say "told you so!" Because of 0baMao's hate for fossil fuels the asshole in chief has blocked production on gov't lands, and/or issued permits to drill where there's no oil anyway. Pretty much all production has been on private land.
So, enjoy yourselves-until the Saudi's have us by the balls again.
Interesting article in the NY Times today regarding Oil Rig shutdowns. I guess old T. Boone was right after all.