US shale an 'unmitigated disaster' with industry hundreds of billions in debt - shale pioneer.
Fracking has been an “unmitigated disaster” for shale companies themselves, according to a prominent former shale executive. “The shale gas revolution has frankly been an unmitigated disaster for any buy-and-hold investor in the shale gas industry with very few limited exceptions,” Steve Schlotterbeck, former chief executive of EQT, a shale gas giant, said at a petrochemicals conference in Pittsburgh. “In fact, I'm not aware of another case of a disruptive technological change that has done so much harm to the industry that created the change.”
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.” The message is not a new one. The shale industry has been burning through capital for years, posting mountains of red ink. One estimate from the Wall Street Journal found that over the past decade, the top 40 independent US shale companies burned through $200 billion more than they earned. A 2017 estimate from the WSJ found $280 billion in negative cash flow between 2010 and 2017. It’s incredible when you think about it – despite the record levels of oil and gas production, the industry is in the hole by roughly a quarter of a trillion dollars.
Shale oil production increases is generally a function of capital expenditure. They'll keep investing as long as they think it's worth it in the long-run. And right now they're still investing. Which means Russia and the middle east BTFO.
Lincoln Lewis
>Russia, the Petrol station that LARPs as a respectable nation, trying to meme a threat to their only benefit to the world away. Only the cum-guzzling leftists would be stupid enough to buy this, Boris.
Production will keep going up and there isn't a damn thing you can do about it. Show flag.
Jaxson Richardson
James Howard Kunstler railed about shale oil back when, saying what a fraud it all was. I wondered how he could be so wrong - maybe he wasn’t.
Joshua Davis
He won't show his flag cuz they've forgot to pay for the vpn again
Nicholas Clark
>you need to invade the middle east goyim, you must secure the oil Fuck off shlomo
Carter Gutierrez
>2017
You mean that time when Obama was leaving office but before his retarded anti-fracking EOs were removed?
Hunter Diaz
anglos are a blight romanians are white
Alexander Bailey
>Show flag. you have to lick my asshole first if you like to satisfy your curiosity are you willing to do that leaf?
Ayden Jones
Why are jews so perverted like this? Is it a genetic failure?
Jaxon Roberts
Generations of inbreeding I suppose
Henry Gomez
STUPID AUSTRALIAN HOMO TURD....LOL Keep guessing you ausie turd brain.
Kayden Morris
fuck off ruski faggot
Alexander Kelly
I don't understand what this article is talking about. Our company has been doing fine. The break even point in West Texas is so low that we were still able to work when oil dropped hard in December. It may be affecting big companies. Because it seems like only the smaller companies work out here and now all the big guys are trying to buy out the little ones.
Joseph Reed
literally fake news
Anthony Lewis
It is a disaster for fracking companies but it has been the savior for the economy. Much lower energy costs. Huge reduction in imports. Huge increase in jobs. New industry in LNG exports. Investments in chemical plants on the Gulf Coast and Appalachia. Factories that are energy intensive can compete much better in global markets now. Bear in mind, fracking costs are ultimately investments, wages or profits somewhere else in the economy. Drillers, steel makers, truckers, rail, sand quarries, engineers, pumps and compressor manufacturers, etc. over $100 billion per year in additional oil and likely a similar amount in natural gas is now produced domestically.
So, a disaster for the drilling companies but very much a good thing for the economy.
Isaiah Parker
Sounds like they shale be going bankrupt soon.
Landon Foster
You started a thread for this? You're really getting your point across.
AND GREAT FOR YOU WATER TABLE....LMAO you will be drinking that poison very soon greedy American dotards. . .hahaha
Charles Ward
Idiotic response.
Alexander Smith
>American dotards. . .hahaha LMAO
Kim Jong-un calls Donald Trump "mentally deranged US dotard." Korean state television reads out a statement by leader Kim Jong Un in which he calls US President Donald Trump a "mentally deranged US dotard.". Report by Charlotte Brehaut. youtube.com/watch?v=25tFmyTgBw0
Only American dotard idiot doesn't comprehend fracking has on the water table.
Levi Johnson
Sell short then
Gavin James
With our progressives, any damage to water tables would be front page news and it isn’t. They tried to imply gas was seeping into the water supply and it was fake news. Only legitimate beef is the occasional earth quakes from injection wells but these are below the threshold to cause damage.
And, why are you here? You must be 18 to post OP.
Jonathan Powell
>”america’s shale oil industry is bad!” >rt (russia) Is this your first time in 2019 or are you just retarded as fuck?
Tyler Perez
LOL, you American dotard areso dumb. I'm not even going to waste my time trying to enlighten you.
Ian Wood
Which would be no effect? Water table is maybe a couple hundred feet below ground, oil and gas formations are thousands. Fissures created in the rock by fracking aren't anywhere remotely close to underground water sources. The only place you might have contamination is in the borehole where it passes through or near water tables and if the concrete lining of the well is defective. And this is a risk with any well, has absolutely nothing to do with fracking. Conventional wells can contaminate groundwater as well if corners are cut and casings are not done properly.
Michael Bell
(((They))) desperately need shale to go away. Shale means we don't need the Middle East, and if we don't need the Middle East, there's no real reason to stay involved bin world affairs. The last thread tying us to the global system we created in 1945 to oppose the Soviets had broken. We spent 70 years opening our markets and patrolling the oceans to ensure free trade in exchange for allies in containing Soviet expansion. But the Soviet Union collapse over a quarter century ago and our "allies" began using the system we maintained to fuck us over. And the only thing keeping us in was our need for Mideast oil. And we don't need it anymore. So you can piss and moan and whine all you want, but your Neocon dream of a new globalist order is over, because we're getting out. If you want something from us, you better be prepared to pay for it.
Ryan Torres
So Americans got cheap oil on the backs of kike investors on Wall Street? Good.
Ayden Nguyen
Hey American dotard, it's not RT's words but (OP) >Steve Schlotterbeck, former chief executive of EQT, a shale gas giant Learn to comprehend your own language you dumb obese American fuck head.
OP isn't a Russian, he's globalist like. The US pulling back is good for Russia. They'll be able to do whatever they want, within reason, and we won't give a shit. For the globalist, though, it's a fucking disaster. With energy independence comes indifference in global affairs. The globalist likes are desperately trying to get us into a shooting war with Iran to keep us involved, and line their own pockets, of course. But the American public's apatite for open ended hot wars we pour money into for no good reason is more than satiated. We're done. OP's post is a pathetic attempt to shill continued Mideast involvement. For our (((Greatest Ally's))) benefit, of course.
Christopher White
He wasn’t wrong. Despite the Russian source of this article, the reports it cites are all legit and American. Shale consumes more capital to produce than it returns to investors, and shale wells decline very fast in output. So shale must constantly be expanding at the rate that we’ve seen, but that costs money that doesn’t get repaid. Wall Street has figured it out finally and there’s no new money coming. Shale is going to consolidate under the major oil companies like Exxon and chevron, previously it has been a bunch of small companies living off investment money. There’s signs that shale oil production may not increase this year for the first time a decade. The whole system is fragile. I wouldn’t be surprised if it gets nationalized at some point in the future because we need the oil yet it isn’t profitable so only the government can operate at a loss for a strategic reason.
Noah Edwards
Oil price low ivan? No dollars for putin? boo hoo
Carson Carter
>Schlotterbeck Oy Vey, Mr Shecklegoldstienberg says the shale oil business is collapsing, Goy! Better bomb Iran to secure the Middle East, just in case, Goy!
Gabriel King
Look at the recent report by Rystad. Only 10% of shale companies are solvent, and it’s the small ones that are being bought out because they’ve run out of investment money. Unless you’re privy to your company balance sheet, you really don’t know how they’re doing. Just drilling wells and seeming to expand isn’t enough to mean they’re solvent. A lot of people have and are making money in shale, just not the people who lent that money in the first place.
Isaac Gutierrez
Fracking was a stupid fucking idea from greedy and stupid people. Fucking idiotic to think that pumping shit water into shit rocks would be anything else than disasterous. Fucking jackholes.
>The system is fragile, Got, Mr Shecklegoldstienberg says so. Pay no attention to microseismic detection advancements or projections of increased production for the next 150 years >Listen Mr Shecklegoldstienberg and bomb Iran to secure Middle East oil
Nicholas Hall
Ivan i have a scary story for you.... oil 9$ a barrel
Caleb Williams
You don’t really know anything about oil production do you
It baffles me that like 75% of people on this board don't understand what fracking is. ROI high percentages have been found to only exist the first year on a well, after that production will drop 40-70%. That's issue one, issue two consists of oversupply and how that affects prices, a resource we once thought scarce is now plentiful. Trump isn't helping either with his OPEC bullshit asking them to ramp up production.
Chase Evans
Latvia. Latvia's economy is behind Albania's and Ukraine....LOL. STFU POOR BITCH.
Angel Lopez
So, are you going to watch the debates? Kamala is sooo bubbly and Buttplug is such a QT.
Oliver Scott
>Trust me, Goy, I'm an (((expert))) >Fraking is a fad that will pass >Better bomb Iran, just in case
Julian Thomas
FINALY some sane American is educating dumb American dotards about the shell oil reality.
Your kids will pay for fracking a dire price. They will hate you for destroying the land than you hate the boomers. Its the same short term thinking the boomers have.
Connor Allen
Wow, just look at all this gas. Boy we sure are getting fucked by all this cheap gas.
