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 ...
Need to increase the demand somehow...
I know!
Print more money!
Ping.
And so hussein’s destruction of America continues.
Low oil prices are the Will of Allah.....
You play, sometimes you lose.
This is by designed to eliminate the fracking companies. The drip, drip, drip, begins here and now moves to the next one.
That was quick. Something tells me this company was badly managed.
al-Standard oil, 2014.
They aren’t killing it, it’s a threat that will always exist to keep OPEC in check. As soon as there is a buck to be made, people will be lining up to restart production.
No; the market conditions changed and they lost their bet.
Going to be lots more to follow.
Wow!
“”So, now the price of oil is down where it is, the shale gas producers might find they are unable to service their debt, so there would be a lot of non-performing loans,” Mr Strachan said.
“By some reports, $15 trillion of funds has been lent to this business, so it may well be in fact that it’s not the oil companies that are in trouble, it’s the banks.
“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.”
Betting a company is not good management. Contingency planning, risk assessment, hedging is good management.
I have no doubts that hussein is behind this since his goal is to decimate the domestic energy industry. He and his corrupt regime have Texas and North Dakota in the crosshairs, seeking to destroy the economy of Conservative regions. His initial plans to wreak havoc on Texas failed with his importing of Ebola and so now he’s using his next attack vector. His evil is utterly boundless.
So, where are all the articles and man-on-the-street interviews with morons blaming big oil for fixing prices?
Excellent point there, FRiend! In terms of semantics, notice how the commies use derisive terms such "Big Oil", "Big Tobacco" and "Big Pharma" to attack corporations thriving in the free enterprise system. Yet they never use phrasing such as "Big Labor" or "Big Government". The commies must be crushed! And Ted Cruz is the man to do it! He'll also get oil prices back to where they ought to be. This market manipulation by hussein and his muzzie comrades is poised to kill the Texas economy...just as he and his OPEC masters have schemed.
This sucks. Gas prices are low and I’m retired and can’t afford to go anywhere.
They aren’t killing it, it’s a threat that will always exist to keep OPEC in check. As soon as there is a buck to be made, people will be lining up to restart production.
I cannot imagine that it will be that easy.
If they stop fracking now, then supplies will go down and prices will go up and fracking will start up...again.
The Saudis can't make the oil disappear.
Shrug.
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