{"id":46587,"date":"2019-06-10T10:49:20","date_gmt":"2019-06-10T15:49:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=46587"},"modified":"2019-06-10T10:49:25","modified_gmt":"2019-06-10T15:49:25","slug":"a-gusher-of-red-ink-for-u-s-shale","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=46587","title":{"rendered":"A \u2018\u2019Gusher Of Red Ink\u2019\u2019 For U.S. Shale"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/A-Gusher-Of-Red-Ink-For-US-Shale.html\">A \u2018\u2019Gusher Of Red Ink\u2019\u2019 For U.S. Shale<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/e20a1a3c66d5778596fe272c6691b153.jpg\" alt=\"shale\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Oil prices are off more about 20 percent in the last two weeks on growing fears of a brewing economic recession. Commodities of all types have been hammered by the pessimism.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFear of global economic growth slowing,\u201d said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit (EIU), according to&nbsp;<a href=\"https:\/\/finance.yahoo.com\/news\/oil-gas-coal-markets-pummelled-052645583.html?soc_src=social-sh&amp;soc_trk=tw\">Reuters<\/a>, \u201cafflicting the entire energy complex with worries that demand growth will be bearish this year.\u201d Prices for coal, natural gas and LNG, and crude oil have plunged.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe continued escalation in trade tensions and broad-based fall in manufacturing&#8230;suggest that the downside risks to growth are becoming more prominent,\u201d Morgan Stanley analysts said in a note.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yet another downturn could not come at a worse time for U.S. shale drillers, who have struggled to turn a profit. Time and again, shale executives have promised that profitability is right around the corner. Years of budget-busting drilling has succeeded in bringing a tidal wave of oil online, but a corresponding wave of profits has never materialized.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Heading into 2019, the industry promised to stake out a renewed focus on capital discipline and shareholder returns. But that vow is now in danger of becoming yet another in a long line of unmet goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAnother quarter, another gusher of red ink,\u201d the Institute for Energy Economics and Financial Analysis, along with the Sightline Institute, wrote in a joint&nbsp;<a href=\"https:\/\/sightline-wpengine.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/Red-Ink-Keeps-Flowing-for-US-Fracking-Sector_June-2019.pdf\">report<\/a>&nbsp;on the first quarter earnings of the shale industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report studied 29 North American shale companies and found a combined $2.5 billion in negative free cash flow in the first quarter. That was a deterioration from the $2.1 billion in negative cash flow from the fourth quarter of 2018. \u201cThis dismal cash flow performance came despite a 16 percent quarter-over-quarter decline in capital expenditures,\u201d the report\u2019s authors concluded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A \u2018\u2019Gusher Of Red Ink\u2019\u2019 For U.S. Shale Oil prices are off more about 20 percent in the last two weeks on growing fears of a brewing economic recession. Commodities of all types have been hammered by the pessimism. \u201cFear of global economic growth slowing,\u201d said Peter Kiernan, lead energy analyst at the Economist Intelligence [&hellip;]<\/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":[588,827],"class_list":["post-46587","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-oil","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46587","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=46587"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46587\/revisions"}],"predecessor-version":[{"id":46588,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46587\/revisions\/46588"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}