Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Half of US shale drillers may go bankrupt: Oppenheimer's Gheit
CNBC ^ | Jan 11, 2016 | Tom DiChristopher

Posted on 01/11/2016 7:59:35 PM PST by familyop

Half of U.S. shale oil producers could go bankrupt before the crude market reaches equilibrium, Fadel Gheit, said Monday...By then it will be too late for many marginal U.S. drillers, who must drill into and break up shale rock to release oil and gas through a process called hydraulic fracturing. Fracking is significantly more expensive than extracting oil from conventional wells.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: collapse; crash; energy; oil; opec

1 posted on 01/11/2016 7:59:35 PM PST by familyop
[ Post Reply | Private Reply | View Replies]

To: familyop
WAY better than going to Debtors Prison.

The individuals with embedded intellectual property will rise again to push peak oil off into the distance. Creative destruction. Painful, but necessary.

2 posted on 01/11/2016 8:04:01 PM PST by Paladin2
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

not the brightest bulb here :)

could you explain that in smaller words lol.

thanks in advance.

are we oing to have to bail out banks and oil companies again!!?/


3 posted on 01/11/2016 8:05:49 PM PST by dp0622 (i .)
[ Post Reply | Private Reply | To 2 | View Replies]

To: dp0622

It means fittest to survive. Those who are least able to compete will go out of business. Those most able to compete will be able grow their companies and continue to refine their technology to improve their profits.


4 posted on 01/11/2016 8:08:28 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 3 | View Replies]

To: familyop

The oil will still be there, and the techniques to extract it will continue to improve.


5 posted on 01/11/2016 8:09:04 PM PST by henkster (Hillary Clinton's supporters are beginning to realize they are fettered to a corpse.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dp0622
Read Schumpeter.

The gov't needs to let Banks and Venture Capitalists and Derivative Sellers disappear if they have guessed wrong and failed.

6 posted on 01/11/2016 8:09:36 PM PST by Paladin2
[ Post Reply | Private Reply | To 3 | View Replies]

To: Paladin2

We need to bomb the Saudis into nothingness.


7 posted on 01/11/2016 8:18:27 PM PST by WENDLE (Trump is not bought . He is no puppet.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: WENDLE

SA needs to work on their goat ropin’ skillz.


8 posted on 01/11/2016 8:21:09 PM PST by Paladin2
[ Post Reply | Private Reply | To 7 | View Replies]

To: WENDLE
Lol? So you blame Saudi Arabia for a business cycle that's been going on since people started using oil? Lol. Oil has always been volatile and spiked and crashed. In the last 15 years oil has been on an unprecedented bull run. It had to crash eventually. Prolonged high oil prices hurt other parts of the economy. It also helped countries like Iran, Venezuela and Russia.

What grade are you in?

9 posted on 01/11/2016 8:26:00 PM PST by nickcarraway
[ Post Reply | Private Reply | To 7 | View Replies]

To: WENDLE

Next time you go to the gas station, why don’t you pay the vendor $4.00/gallon, no matter what the posted price is?


10 posted on 01/11/2016 8:27:26 PM PST by nickcarraway
[ Post Reply | Private Reply | To 7 | View Replies]

To: familyop

Shale was a huge bubble, fed by super cheap capital and low interest rates from central banks around the globe - which both set off a boom in oil/commodities prices, and provided lots of super-cheap funding for exploration. It was also fed by legitimate increases in technology which allowed such gas to be accessed.

Once again though, this boom and subsequent bust was a central bank / printed money phenomenon


11 posted on 01/11/2016 8:32:07 PM PST by PGR88
[ Post Reply | Private Reply | To 1 | View Replies]

To: nickcarraway

Are you oblivious to SA flooding the market to destroy our drilling? Are you that out of it? Wow!!


12 posted on 01/11/2016 8:33:16 PM PST by WENDLE (Trump is not bought . He is no puppet.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: WENDLE

How was fracking not “flooding the market”?


13 posted on 01/11/2016 8:48:02 PM PST by Paladin2
[ Post Reply | Private Reply | To 12 | View Replies]

To: familyop

The company where I work filed Chapter 11 on New Year’s eve. We cannot make any money at these prices. Nobody can.


14 posted on 01/11/2016 8:52:51 PM PST by FlyingEagle
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jonty30

gotcha.

but i hope bailouts dont happen again. we cant take the hit to our 20 trillion debt.

and doesn’t that throw off the survival of the fittest?

IF it happens, i mean.


15 posted on 01/11/2016 9:47:32 PM PST by dp0622 (i .)
[ Post Reply | Private Reply | To 4 | View Replies]

To: familyop

Oil drillers going bankrupt? Gee, that’s never happened before.


16 posted on 01/11/2016 10:03:05 PM PST by SeaHawkFan
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

Im only skeptical it will be ONLYhalf.


17 posted on 01/11/2016 10:41:03 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: WENDLE
You need to learn a lot. Conservatives used to be smart, and a lot are just ignorant now.

RC Saudi Arabia not allowed to sell the oil they have? Should some other country tell that the United States that there shall oil producer shouldn't be allowed to sell their oil?

as I said before oil prices has been very volatile. Remember in 1986 when they went to $10 a barrel. If you're going to be an oil you have to live with that you can get fat in the good times but the bad times can be really bad.

I see that you don't agree with the free market. The reason Saudi Arabia is pumping more oil is a lot more complicated than you make it out to be. They also realize that propping up the price is too long could result in a crash. But anyway you stack it they still have to sell their oil for the lower priced too. With all the new oil available they're never going to have the market share they once had again.

and for all the cheap oil that Saudi Arabia has they can't completely control the price either. Crashes are going to happen whether they like it or not. Why don't you go look up a chart of oil prices over the last century.

you also fail to note two things. Countries like Iran Venezuela and Russia are hurting because of the low prices. Are you bummed out about that? Also the unprecedented high price of oil over the last 15 years hurt a lot of other businesses in the United States.

you still haven't said how old you are. Where you at least 20 were sold in 1999?

18 posted on 01/11/2016 10:45:21 PM PST by nickcarraway
[ Post Reply | Private Reply | To 12 | View Replies]

To: familyop

Why make such a short excerpt that there is no info for discussion?

- - - - - -

The senior oil and gas analyst at Oppenheimer & Co. said the “new normal oil price” could be 50 to 100 percent above current levels. He ultimately sees crude prices stabilizing near $60, but it could be more than two years before that happens.

By then it will be too late for many marginal U.S. drillers, who must drill into and break up shale rock to release oil and gas through a process called hydraulic fracturing. Fracking is significantly more expensive than extracting oil from conventional wells.

“Half of the current producers have no legitimate right to be in a business where the price forecast even in a recovery is going to be between, say, $50, $60. They need $70 oil to survive,” he told CNBC’s “Power Lunch.”


19 posted on 01/12/2016 4:41:30 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson