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 ...
Especially when your business plan allows for a high percentage of speculation.
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
Obama will bail them out.. no problem.
Once again the Free Republic shows that this is the place where really intelligent poster reside. Jack Hydrazine... Future Federal Reserve Chairman. ;)
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.
Holy Shiite. The first paragraph of the article cited gave me my full dose of depression for today.
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.
I’ve already sent in my resume for the position!
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.
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.
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.
Yep.
Not one company and not one year.
Russia will not put up with this for long. I bet they will be visiting the Saudis shortly.
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.
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
You’re on the list if you say you’re on the list.
Happy Trails!
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.
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