{"id":3115,"date":"2014-12-16T19:25:49","date_gmt":"2014-12-17T00:25:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3115"},"modified":"2014-12-16T19:25:50","modified_gmt":"2014-12-17T00:25:50","slug":"great-unwind-of-oil-and-gas-junk-bonds-to-defund-fracking-wolf-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3115","title":{"rendered":"Great Unwind of Oil-and-Gas Junk Bonds to Defund Fracking? | Wolf Street"},"content":{"rendered":"

Great Unwind of Oil-and-Gas Junk Bonds to Defund Fracking? | Wolf Street<\/a>.<\/p>\n

The price of oil plunged once again off the chart on Monday and early Tuesday. At one point, West Texas Intermediate traded below $54\u00a0per barrel, though it soon bounced off. Crude\u00a0is\u00a0down nearly 50% since June. And over-indebted energy companies with cash flows that\u00a0range from increasingly uncertain to completely demolished are suddenly contemplating just how deep the abyss might be.<\/p>\n

The below-investment-grade bonds these risky companies issued with enormous hoopla and hype to fund the shale revolution and offshore drilling projects, lovingly dubbed \u201cjunk bonds,\u201d had been sold to investors on the premise that oil would sell for ever increasing prices in the future, with the understanding that this might allow the company to make interest payments on time and raise new debt to pay off the old debt when it matures.<\/p>\n

Even the still uncertain economics of fracking \u2013 the expense of drilling coupled with the horrendous decline rates \u2013 or the potential environmental consequences and subsequent backlash were elegantly shrugged off on Wall Street, given the ever increasing price of oil.<\/p>\n

<\/p>\n

<\/a><\/a>…click on the above link to read the rest of the article…<\/span><\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Great Unwind of Oil-and-Gas Junk Bonds to Defund Fracking? | Wolf Street. The price of oil plunged once again off the chart on Monday and early Tuesday. At one point, West Texas Intermediate traded below $54\u00a0per barrel, though it soon bounced off. Crude\u00a0is\u00a0down nearly 50% since June. And over-indebted energy companies with cash flows that\u00a0range […]<\/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":[184,331,402,1775],"class_list":["post-3115","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-crude-oil","tag-fracking","tag-high-yield-bonds","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3115","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=3115"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3115\/revisions"}],"predecessor-version":[{"id":3116,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3115\/revisions\/3116"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}