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Oil price collapse claims WA's Red Fork Energy, shale gas company in receivership (1st Major Victim)
ABC News ^ | 12-12-2014 | Kathryn Diss

Posted on 12/12/2014 9:10:50 PM PST by tcrlaf

The collapse of the oil price has snared its first West Australian victim with Red Fork Energy losing the support of its major lender.

The Perth-based company drills shale rock onshore in the United States, producing oil and gas.

But it is completely exposed to the US shale industry, which analysts say has become unviable at current oil prices.

The oil price has tumbled 40 per cent in recent months, dragging down the value and margins of oil and gas producers.

Red Fork's major lender, Guggenheim Corporate Funding, called in the receivers this week

(Excerpt) Read more at abc.net.au ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections
KEYWORDS: fracking; oil; price
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To: doc1019
You play, sometimes you lose.

Especially when your business plan allows for a high percentage of speculation.

41 posted on 12/13/2014 4:44:25 AM PST by trebb (Where in the the hell has my country gone?)
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To: kempster

It can be argued that it is opportunity for the stronger companies to acquire the assets of the weak companies. It is not drip, drip, drip..... it is the market functioning as it should


42 posted on 12/13/2014 4:53:26 AM PST by bert ((K.E.; N.P.; GOPc.;+12, 73, ..... Obama is public enemy #1)
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To: tcrlaf

Obama will bail them out.. no problem.


43 posted on 12/13/2014 5:05:58 AM PST by maddog55
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To: Jack Hydrazine
I know! Print more money!

Once again the Free Republic shows that this is the place where really intelligent poster reside. Jack Hydrazine... Future Federal Reserve Chairman. ;)

44 posted on 12/13/2014 5:19:34 AM PST by D Rider
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To: re_nortex
"What the regime has orchestrated is actually quite cunning ..."

Do you actually think that this band of incompetent fools is "cunning" enough to orchestrate falling oil prices to engineer the destruction of the domestic oil industry? There isn't enough brainpower in this administration to plan an Easter egg hunt let alone a "planned" 40% drop in oil prices.

This happened in spite of Obama. The futures market had driven prices up to an unsustainable level. US and Saudi production, combined with decreased demand, have created an oversupply situation. The market is correcting. Price will keep moving to an equilibrium point.

45 posted on 12/13/2014 5:36:02 AM PST by Former Proud Canadian (Gold and Silver are Real Money, Accept No Substitutes)
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To: PGalt

Holy Shiite. The first paragraph of the article cited gave me my full dose of depression for today.


46 posted on 12/13/2014 5:40:16 AM PST by Former Proud Canadian (Gold and Silver are Real Money, Accept No Substitutes)
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To: re_nortex

Ahh.. So now we know why Obama is going hard with EPA regs. Force companies to spend more money which wasn’t planned as part of their risk assessments.

Hit from both sides, companies, even well managed ones will collapse.

In truth, I do want a company to fail and fail big. That is Goldman Sachs.


47 posted on 12/13/2014 6:00:56 AM PST by EQAndyBuzz (You can't spell liberal without label.)
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To: D Rider

I’ve already sent in my resume for the position!


48 posted on 12/13/2014 6:20:51 AM PST by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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To: boycott

My point wasn’t that it would be easy. A lot of people will lose a lot. My point was that the OPEC strategy is flawed. This strategy of keeping the market flooded and driving out the shale and sand producers is only a temporary result. It will cause market chaos without doubt. However, in the end, those resources are static and will always be a threat to OPEC. If OPEC thinks they can sustain 100 dollar oil again, they are mistaken.
This cycle will repeat over and over, get shorter each time, and eventually the unbeatable forces of the open market will prevail.


49 posted on 12/13/2014 6:40:29 AM PST by FunkyZero (... I've got a Grand Piano to prop up my mortal remains)
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To: re_nortex
I think you are spot-on. The entire anti-fracking campaign succumbed to facts and good data. Other enviromental flavored events which failed included prosecuting oil companies over 28 bird carcases gleaned from over 6000 producing and drilling locations, the railroad transport panic that failed to materialize, stopping the Keystone XL pipeline, (even an initiated State Constitutional measure in ND, supported by outside interests which would have mandated the siphoning off of 150 million a year to special "environmental" interests regardless of the State's revenue, and that the money must be spent, which was disguised as a "conservation measure") The people of ND say through that and voted it down by a wide margin.

But the industry in general has been a thorn in the administration's side when it comes to rendering the American People destitute and dependent.

The other growth sector is Government, and the minions of power can control who gets those jobs. Not so in the oil patch, which has spawned spin off jobs and business opportunities in other sectors across the country.

It is all about power, and you can't enslave people who have the chance to go and earn a living.

I have seen those people, from all over the US, come here and bust their butts to keep their home elsewhere, to make a living, to carve a niche out for themselves and their families from scratch. God Bless them.

50 posted on 12/13/2014 6:44:25 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: Jack Hydrazine
I’ve already sent in my resume for the position!

Awesome! If it wasn't an elitist non-democratic position you would have my vote comrade. I can call my stock broker and see if he could send a memo up the chairman, for what its worth.

51 posted on 12/13/2014 6:44:43 AM PST by D Rider
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To: Lurkina.n.Learnin
“Over the next six months, I’ll be watching very closely to see how these banks react to their debt, if they come back to the company and say we want our money back, the company says we’ve got no way of repaying it, the bank will end up owning these oil and gas assets.”

Yep.

52 posted on 12/13/2014 6:45:42 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: txnativegop

Not one company and not one year.


53 posted on 12/13/2014 6:56:45 AM PST by thackney (life is fragile, handle with prayer.)
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To: tcrlaf

Russia will not put up with this for long. I bet they will be visiting the Saudis shortly.


54 posted on 12/13/2014 7:00:53 AM PST by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: FunkyZero

It’s a shame because the oil fields have been one of the few bright spots with out economy over the last few years.

Obama and the left have been against our oil production but it’s one of the few things that have kept our economy from being a lot worse.


55 posted on 12/13/2014 7:58:29 AM PST by boycott
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To: tcrlaf

http://www.wsj.com/articles/tracing-oil-price-plunge-back-to-texas-1418404579?mod=WSJ_hp_LEFTTopStories

How Crude Oil’s Global Collapse Unfolded

By Russell Gold

Since the 1970s, Nigeria has sent a steady stream of high-quality crude oil to North American refineries. As recently as 2010, tankers delivered a million barrels a day.

Then came the U.S. energy boom. By July of this year, oil imports from Nigeria had fallen to zero.

Displaced by surging U.S. oil production, millions of barrels of Nigerian crude now head to India, Indonesia and China. But Middle Eastern nations are trying to entice the same buyers. This has set up a battle for market share that could reshape the Organization of the Petroleum Exporting Countries and fundamentally change the global market for oil.

snip

The roots of the price collapse go back to 2008 near Cotulla, Texas, a tiny town between San Antonio and the Mexican border. This was where the first well was drilled into the Eagle Ford Shale. At the time, the U.S. pumped about 4.7 million barrels a day of crude oil.

Today, two hundred drilling rigs blanket South Texas, steering metal bits deep underground into the rock. Once drilled and hydraulically fractured, these wells yield large volumes of high-quality oil; at the moment, the U.S. is producing 8.9 million barrels a day, thanks to the Eagle Ford and other new oil fields.

snip


56 posted on 12/13/2014 8:25:14 AM PST by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
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To: wita

You’re on the list if you say you’re on the list.

Happy Trails!


57 posted on 12/13/2014 9:54:00 AM PST by VerySadAmerican (My love affair with an abuser is over. Support a third party.)
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To: Vince Ferrer
Not diversified enough...
58 posted on 12/13/2014 10:03:51 AM PST by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: abb
BTTT
59 posted on 12/13/2014 10:04:45 AM PST by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: Former Proud Canadian
Holy Shiite. The first paragraph of the article cited gave me my full dose of depression for today.

No rainbows and skittles in that article.

Further down in the article, The only way to stop sociopaths is to throw them in jail or kill them.

Article of the year.

60 posted on 12/13/2014 10:05:50 AM PST by PGalt
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