{"id":43655,"date":"2019-02-08T09:41:39","date_gmt":"2019-02-08T14:41:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43655"},"modified":"2019-02-08T09:41:41","modified_gmt":"2019-02-08T14:41:41","slug":"are-investors-finally-waking-up-to-north-americas-fracked-gas-crisis%ef%bb%bf","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43655","title":{"rendered":"Are Investors Finally Waking up to North America\u2019s Fracked Gas Crisis?\ufeff"},"content":{"rendered":"\n

Are Investors Finally Waking up to North America\u2019s Fracked Gas Crisis?<\/a><\/h3>\n\n\n\n
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The fracked gas industry’s long borrowing binge may finally be hitting a hard reality: paying back investors.<\/p>\n\n\n\n

Enabled by\u00a0rising debt<\/a>, shale companies have been achieving\u00a0record fracked oil and gas production, while promising investors\u00a0a big future payoff. But over a decade into the \u201cfracking miracle<\/a>,\u201d investors are showing signs they’re worried that payoff will never come \u2014 and as a result, loans are drying\u00a0up.<\/p>\n\n\n\n

Growth is apparently no longer the answer for the\u00a0U.S.\u00a0natural gas industry, as Matthew Portillo, director of exploration and production research at the investment bank Tudor, Pickering, Holt\u00a0&\u00a0Co., recently\u00a0told The Wall Street Journal<\/a>.<\/p>\n\n\n\n

\u201cGrowth is a disease that has plagued the space,\u201d Portillo said. \u201cAnd it needs to be cured before the [natural gas] sector can garner long-term investor interest.\u201d<\/p><\/blockquote>\n\n\n\n

Hints that gas investors are no longer happy with growth-at-any-cost abound. For starters, several major natural gas producers have announced spending cuts <\/a>for 2019.<\/p>\n\n\n\n

After announcing layoffs <\/a>this January, EQT, the largest natural gas producer <\/a>in the U.S., also promised to decrease spending by 20 percent in 2019.Embed from Getty Images<\/a><\/p>\n\n\n\n