{"id":14853,"date":"2015-11-28T08:11:02","date_gmt":"2015-11-28T13:11:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14853"},"modified":"2015-11-28T08:13:18","modified_gmt":"2015-11-28T13:13:18","slug":"on-the-cusp-of-a-staggering-default-wave-energy-intelligence-issues-apocalyptic-warning-for-the-energy-sector","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14853","title":{"rendered":"“On The Cusp Of A Staggering Default Wave”: Energy Intelligence Issues Apocalyptic Warning For The Energy Sector"},"content":{"rendered":"

“On The Cusp Of A Staggering Default Wave”: Energy Intelligence Issues Apocalyptic Warning For The Energy Sector<\/a><\/h3>\n
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The\u00a0Energy Intelligence<\/a>\u00a0news 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<\/a>?”, people listen… and if they are still long energy junk bonds, they panic.<\/div>\n<\/div>\n
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The summary:<\/p>\n

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“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?”<\/div>\n<\/blockquote>\n

The\u00a0full report by Paul Merolli<\/a>, a senior editor and correspondent at Energy Intelligence:<\/em><\/p>\n

Debt Bomb Ticking for US Shale<\/strong><\/p>\n

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.\u00a0<\/strong>Without higher oil and gas prices \u2014 which few experts foresee in the near future \u2014 an over-leveraged, under-hedged US E&P industry faces a truly grim 2016. How bad could things get and when? It increasingly looks like a number of the weakest companies will run out of financial stamina in the first half of next year, and with every dollar of income going to service debt at many heavily leveraged independents, there are waves of others that also face serious trouble if the lower-for-longer oil price scenario extends further.<\/p>\n

“I could see a wave of defaults and bankruptcies on the scale of the telecoms, which triggered the 2001 recession<\/strong>,” Timothy Smith, president of consultancy Petro Lucrum, told a Platts energy conference in Houston last week.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“On The Cusp Of A Staggering Default Wave”: Energy Intelligence Issues Apocalyptic Warning For The Energy Sector The\u00a0Energy Intelligence\u00a0news 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1996,7418,7453,3325,200,554,7572,6041,7530,1264,4318],"class_list":["post-14853","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-capital-expenditures","tag-capital-markets","tag-chesapeake-energy","tag-creditors","tag-default","tag-natural-gas","tag-nymex","tag-private-equity","tag-ratings","tag-recession","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14853"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14853\/revisions"}],"predecessor-version":[{"id":14855,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14853\/revisions\/14855"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}