Posted on 11/28/2015 4:40:47 PM PST by Lorianne
The Energy Intelligence news and analysis creator and aggregator is not one to haphazradly throw around hyperbolic claims and forecasts. So when it gets downright apocalyptic, as it did this week in a report titled "Is Debt Bomb About to Blow Up US Shale?", people listen... and if they are still long energy junk bonds, they panic.
The summary: "The US E&P sector could be on the cusp of massive defaults and bankruptcies so staggering they pose a serious threat to the US economy. Without higher oil and gas prices -- which few experts foresee in the near future -- an over-leveraged, under-hedged US E&P industry faces a truly grim 2016. How bad could things get?"
(Excerpt) Read more at energyintel.com ...
I just opened the article and will go to read because I am interested but I just wanted to say Saudi Arabia really gets us coming and going.
Complicit in 9/11 and a million other terror attacks.
Content to flood oil market and slam prices.
and in bed with generations of president since Bush I.
what a shame
We ISIS’d some folks - Barry
55 percent of revenue goes to debt on average for these companies.
that is staggering.
Why did everyone ASSUME that the price would stay at 100 forever?
because an analyst said so? an analyst also told me not to buy Ford at a buck and waste my money. I think it’s now 15.
No one learned anything from the bank debacle.
Well, I learned one thing. The pockets will always be bailed out by the little pockets and money printers will keep on rolling.
Wait till interest rates start going up. That should help things.,./s
Flood market with Sunni/Saudi/ISIS oil. Wipe out debt laden frackers(of good and profitable intentions). High-$take$ geo-politics and international finance.
Gee, it’s too bad Russia is bombing the truck convoys. And killing the Saud’s mercenaries in Syria.
But like I said before, I’ve read where they can only keep this up for about a year financially.
BUT that year will take us to the new president.
Bad relations with Russia makes no sense anymore. I didn’t say trust and go bowling with Putin, but have good relations.
Doesn't the US produce more oil than SA?
If you think agriculture subsidies are bad, just wait until oil subsidies start up.
Welcome to Venezuela!
This is exactly what the Saudis have been waiting for. And it looks like the Obama White House will hand it to them on a silver platter.
If Donald Trump were President I would advise him to have banks restructure debt for the O & G Companies, put in a floor price for oil imported into the US, say between $35 and $40 per bbl, negotiate massive LNG deals with South Korea, other Asian nations, and Europe.
With America exporting excess natural gas in liquid form (LNG) and exporting excess oil, the economy would be greatly boosted for decades to come, millions (no exaggeration) of well-paying secure and stable jobs would be created, and domestic gas prices could hover around $1.50 per gallon giving a further boost to the economy.
I would also suggest to President Trump to ***delete*** electronically the treasury debt arising from domestic Fed monetization (foreign debt would continue to be serviced) which accounts now for more than 70% of the treasury debt IN EXCHANGE for a BBA, and to have the BBA budgets set on a glide path to save Social Security.
Interest rates could then rise naturally so that savers, pension funds and shareholder bonds would all see a real return on capital.
The downside would be the demolition of the carry trade in the bond markets, but no one would care much except hedge funds and bond traders. They’ve pigged out at the money trough for so long now that they are due for a downsizing. The benefit to society would be at the expense of these persons who make hundreds of millions every year virtually tax-free. I see nothing wrong in that.
Agree
get extra gas now while its inexpensive and indecent supply. and stabil.
SO your view is that low oil prices are terrible for the United States in general. What a complete moron you are.
hey. you’re a friendly guy :)
you should be in charge of getting new members :)
and you’d rather low prices and Saudi Arabia crushes the shale industry AND keeps making a fortune to arm terrorists.
quite a patriot too :)
What other unconstitutional acts would you suggest he put in his five year plan?
To make matters worse they are using what money they have to buy a lot of weapons for an upcoming war with Iran. This war, which seems to be almost inevitable now that Iran is being allowed to make nuclear weapons, will be devastating to the middle east. Saudi Arabia may not survive. It will at least be bankrupted. Sit tight and be patient, their end is near.
Explain what was ‘unconstitutional’.
Here’s three things the exec has no constitutional authority to do for starters:
1) have banks restructure debt for the O & G Companies,
2) put in a floor price for oil imported into the US,
3) I would also suggest to President Trump to ***delete*** electronically the treasury debt
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