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Half Of US Frackers Will Be Dead By Year End, Weatherford Warns
Following the CEO's comments that over 100,000 energy jobs will be lost this year, an executive with Weatherford International - the fifth largest US fracker - has warned half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies. “We go by and we see yards are locked up and the doors are closed," said Rob Fulks, seemingly confirming what Weatherford CEO Duroc-Danner said earlier in the year, "we're now confronted with an unusually severe market contraction."
As Bloomberg reports, there were 61 fracking service providers in the U.S., the world’s largest market, at the start of last year. Now there are 41... and it's going to get a lot less...
Half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies, an executive with Weatherford International Plc said.
There could be about 20 companies left that provide hydraulic fracturing services, Rob Fulks, pressure pumping marketing director at Weatherford, said in an interview Wednesday at the IHS CERAWeek conference in Houston. Demand for fracking, a production method that along with horizontal drilling spurred a boom in U.S. oil and natural gas output, has declined as customers leave wells uncompleted because of low prices.
...
Weatherford, which operates the fifth-largest fracking operation in the U.S., has been forced to cut costs “dramatically” in response to customer demand, Fulks said. The company has been able to negotiate price cuts from the mines that supply sand, which is used to prop open cracks in the rocks that allow hydrocarbons to flow.
Oil companies are cutting more than $100 billion in spending globally after prices fell. Frack pricing is expected to fall as much as 35 percent this year, according to PacWest, a unit of IHS Inc.
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“We go by and we see yards are locked up and the doors are closed,” he said. “It’s not good for equipment to park anything, whether it’s an airplane, a frack pump or a car.”
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While 'stability' in oil prices remains the status quo, it appears the industry cannot manage on that alone (and given the pricing of recent resource-related junk bond offerings, they will not have the luxury of cheap financing to enable them to keep running).
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Frack em.
Think of all the groundwater that isn't going to be contaminated.
They should put all those drilling rigs to work in CA looking for water.
The new gold rush, they might even find enough nuggets of barbaric relics to offset costs.
I thought, finally some good news. Then I read it is only the companies that are dead. Oh, well. Can't have everything.
Think of all the taxes that won't be collected, families destroyed, and all the new liberated welfare recipients.
Everything is awesome!!!
this shale fracking boom is about all that this economy had going for it and now that is dead.
When all those oil junk bonds start defaulting and we find out how much liquidity doesn't really exist we will get a chance to see how fast Yellen can spin.....
Bingo! America had little real mainstreet wealth producing jobs. Fracking was one of the few, and sadly, it was not even wealth producing, but a bubble based on borrowed billions. America has what job producing sectors left that do not require Government Spending to further? None. That is why Washington has chosen global war as it's next stimulus plan!
printing money is a good business
Fracker: "Frack this job and the fracking company!"
Company: "No, Frack You!"
Guess who won that argument?
Seriously though... If the Half-Life is 1 year, you can do the math, what the life expectancy is for the rest. Ouch! This is very bad news for the Frackers, possibly good news for...
A. Their disgruntled (previously horny/'lonely') wives, who now get to collect life insurance years sooner than expected
B. Very good news for the companies that employed them, as they get to collect on the life insurance they put** on their ex-employees. If a fracking company has a bunch of (several dozen) roughnecks and there is a large life insurance on each, the company can (and in this case, WILL) collect millions in life insurance. If their execs (CEO, COO and CFO) were smart & ruthless, they would have factored this into their biz model from the start, and realized better (deferred/sheltered) profits than their Creditors realized.
** Bet ya didn't know (what I already posted 1-2 years ago), that employers often almost always take out life insurance on their employees -- whose very existence and amount is confidential info -- and which lasts much longer than the life insurance the employee has on himself (that expires when he leaves the company).
IOW... long after an employee has left the company, if he/she dies, the company collects a nice life insurance benefit.
Half of the US fuckers will be dead by year end
"If you want to keep your fracking, you can keep your fracking. You have my promise on that. "
Texas and Russia are partners on the fracking money train
Russia’s Roman Abramovich Invests $15M In Texas Propell Technologies (Fracking)
Texas Politicians Force Citizens to Accept Fracking…..Lose Local Control
Lies, damn lies, and statistics, pick your poison....
Learn some history... http://postmag.org/fracking-and-the-corporate-state/
Excellent Link! +100 Bookmarked and saved for research.
'Abramovich' (meaning 'Son of Abram' in Russian): Upholding tradition and fracking heritage.
In other languages/cultures, it would be Abramsson (Swedish), Bar Abram (Hebrew), Abu Abram, Bin Abram or Ibn Abram (Arabic).
To get a deeper sense or understanding of a person, it is operationally useful to go beyond the man or woman, and to look at the heritage that shaped him/her. The more you know about them, the better you understand them.
It's why marketers and TPTB love all that data and metadata on each person, be it via Debit/Credit Card purchases, FB, Linkedin, Netflix choices, etc.
Wow a whole $15 million huh? Why that's enough to buy 1.5 eagleford wells.
Weatherford International PLC (NYSE: WFT) plans to cut 18 percent of its workforce this year.
http://www.bizjournals.com/houston/morning_call/2015/04/weatherford-incr...
"welcome to the recovery...."
Dow _ _ _,000.
Recovery as in "bodies were recovered from the wreckage".....
You're missing a Zero.. :D
Sorry I'm a realist / expecting the worst kind of guy...
"Half Of US Frackers Will Be Dead By Year End, Weatherford Warns"
Subhead: "And Via Default and Bankruptcy in the Hands of the Zionist Banksters."
Liberty is a demand. Tyranny is submission.
"Zion Owner Alles."
Why would a company die if it is slashing spending? Slashing spending is an action taken by the company to AVOID bankruptcy and death!
The fracking services companies are hired to provide fracking services to oil production companies. So if the oil production companies cut spending, the fracking services companies get less revenues. The oil production companies may avoid bankruptcy, but by doing so, cause the service companies to go under.
In North Dakota's case, many of the Fracking jobs are in those service industries. I read of a girl who drove truck for a water services company. She drove from city water well to various rigs. Depending on overtime, she pulled $60K to $80K and called it a dream come true. She was buying a new house for her and her two kids. Just associate the jobs that went with building this new house for her! All the ND small businesses and contractors making money from her one fracking services job. Multiply by many many thousands!
That just simply sad. My daughter made $90k last year from a few good commissions. The year before it was $30k. I watched in fascination. She paid off all her student loans, fixed up her beater car so it wouldn't break down again and bought a nice coffee maker. She still lives in a studio appt and sleeps on a mattress on the floor ( so to have more room for her projects). She is debt free, loves the freedom and can comfortably pay her bills.
Sometimes the best gift you can give your children is the insight to understand what is sustainable and what is not.
Miffed
No worries the Saudi's are ready to step in on any shortfall.
WalMart here we come!
Half of US Fuckers will be dead by year end weather warns. If ONLY!
And this is a bad thing?
It is nice to be vindicated. I've posted about fracking often. It was a bubble, and not so economically viable without the flood of ZIRP money, and Junk Bonds. Many investment advisors sought to get the retail investor into high yield Fracking products. Those people are going to be killed. The Network TV channels like CNBC and the others pimped for Frackers and Fracking. It was patriotic to invest in a bubble with marginal profit potential
Hydraulic fracturing for oil and gas is like fishing with handgrenades. The externalities are limitless. This geological damage cannot be undone. Just the most modern case of Corporatocracy. Environmental and financial devastation for the greed and immediate gratification of the elite.
file this article with the "rig count" ones.
(yawn!)
“We go by and we see yards are locked up and the doors are closed,"
The same is hitting miners of Iron and Copper. Locally 1,100 miners and processers are being shown the door and the padlocks are ready to shutter two mines.
I assume they can all go to nursing school, or work for the city, county or State!
I guess this show won't be renewed...
http://www.smithsonianchannel.com/shows/boomtowners/1003787
Good, rose, oas, clr needs to go to zero so my puts skyrocket.
I hope they all go to zero just like all the subprime lenders, mortgage holding hedge funds, rating agencies, mortgage insurers, banks and of course i-banks did a few years ago.
My sister-in-laws father is so smart he got rid of his oil leases 2-years ago in Texas and Oklahoma.
And I almost forgot, I hope the frackers leave a shit-load-of a mess of the land they were leasing from the 'lucky owners.'
Cheers! and a nice tall glass of frack water to that!