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Interest Expense Threatens Shale
There is a time honored saying that “Leverage is a two-edged sword; it makes good times look better, and bad times look worse.” According to a recent article in “World Oil”, this has never been truer than in the case of the shale revolution. The very debt financing that enabled many shale operators to develop… Read More
Saratoga Bankruptcy
“Rigzone” reports that the oil price collapse and legal problems have forced Saratoga Resources Inc. to seek protection under Chapter 11. An adverse ruling in arbitration brought by Harvest Operating for $3.7 million apparently was the last straw for Saratoga. Predictably Chairman and CEO, Thomas Cooke, tried to put a positive spin on the filing… Read More
OPEC Market Share
As OPEC continues to increase production in its efforts to intensify pressure on U. S. shale drillers, the global oil glut continues. This in turn sustains downward pressure on prices. There has already been an oil glut for 5 consecutive quarters. According to the International Energy Agency, if OPEC continues producing at current rates this… Read More
Major Casualties
When oil prices collapsed last November, most industry observers predicted the demise of domestic shale operators. However, according to a recent article in “World Oil”, it is the international majors who are the unexpected casualties. In order to maintain their economic viability in the new low price environment, the smaller, nimbler, shale operators used loans,… Read More
New Swing Producer
In a recent article in “Rigzone”, author John Kemp cites two recent developments supporting his contention that the shale revolution has transformed global oil markets. His first example is the U. S. Congress considering legislation to repeal the 1973 crude oil export ban. However, his primary focus is on the emergence of domestic shale operators… Read More
