{"id":29178,"date":"2017-12-27T13:06:21","date_gmt":"2017-12-27T18:06:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29178"},"modified":"2017-12-27T13:06:21","modified_gmt":"2017-12-27T18:06:21","slug":"the-u-s-shale-oil-industry-swindling-stealing-energy-to-stay-alive","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29178","title":{"rendered":"THE U.S. SHALE OIL INDUSTRY: Swindling & Stealing Energy To Stay Alive"},"content":{"rendered":"
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THE U.S. SHALE OIL INDUSTRY: Swindling & Stealing Energy To Stay Alive<\/a><\/h3>\n

While the U.S. Shale Energy Industry continues to borrow money to produce uneconomical oil and gas, there is another important phenomenon that is not understood by the analyst community.\u00a0 The critical factor overlooked by the media is the fact that the U.S. shale industry is swindling and stealing energy from other areas to stay alive.\u00a0 Let me explain.<\/span><\/p>\n<\/header>\n

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First, let\u2019s take a look at some interesting graphs done by the Bloomberg Gadfly.\u00a0 The first chart below shows how the U.S. shale industry continues to burn through investor cash regardless of $100 or $50 oil prices:<\/p>\n

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The chart above shows the negative free cash flow for 33 shale-weighted E&P companies.\u00a0 Even at $100 oil\u00a0prices in 2012 and 2013, these companies spent more money producing shale energy in the top four U.S. shale fields than they made from operations.\u00a0<\/strong> While costs to produce shale oil and gas came down in 2015 and 2016 (due to lower energy input prices), these companies still spent more money than they made.\u00a0 As we can see, the Permian basin (in black) gets the first place award for losing the most money in the group.<\/p>\n

Now, burning through investor money to produce low-quality, subpar oil is only part of the story.\u00a0 The shale energy companies utilized another tactic to bring in additional funds\u00a0from the POOR SLOBS in the retail investment community\u2026 it\u2019s called equity issuance.\u00a0 This next chart reveals the annual equity issuance by the U.S. E&P companies:<\/p>\n

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According to the information in the chart, the U.S. E&P companies will have raised over $100 billion between 2012 and 2017 by issuing new stock to investors.<\/strong>\u00a0 If we add up the funds borrowed by the U.S. E&P companies (negative free cash flow), plus the stock issuance, we have the following chart:<\/p>\n

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

THE U.S. SHALE OIL INDUSTRY: Swindling & Stealing Energy To Stay Alive While the U.S. Shale Energy Industry continues to borrow money to produce uneconomical oil and gas, there is another important phenomenon that is not understood by the analyst community.\u00a0 The critical factor overlooked by the media is the fact that the U.S. shale […]<\/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":[3],"tags":[48,2514,4654,6957,723,12073,7893],"class_list":["post-29178","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bakken","tag-eagle-ford","tag-eroi","tag-permian","tag-shale-oil","tag-srsrocco-report","tag-us-shale-industry"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29178","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=29178"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29178\/revisions"}],"predecessor-version":[{"id":29179,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29178\/revisions\/29179"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}