{"id":47378,"date":"2019-07-22T14:18:18","date_gmt":"2019-07-22T19:18:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47378"},"modified":"2019-07-22T15:07:14","modified_gmt":"2019-07-22T20:07:14","slug":"47378","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47378","title":{"rendered":"U.S. Shale Is Doomed No Matter What They Do"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/US-Shale-Is-Doomed-No-Matter-What-They-Do.html\">U.S. Shale Is Doomed No Matter What They Do<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/1f67cb7a40fda16c9d58e2a405281016.jpg\" alt=\"Shale drillers\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">With financial stress setting in for U.S. shale companies, some are trying to drill their way out of the problem, while others are hoping to boost profitability by cutting costs and implementing spending restraint. Both approaches are riddled with risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTurbulence and desperation are roiling the struggling fracking industry,\u201d Kathy Hipple and Tom Sanzillo wrote in a&nbsp;<a href=\"http:\/\/ieefa.org\/wp-content\/uploads\/2019\/07\/Risks-to-Fracking-Companies_July-2019.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">note<\/a>&nbsp;for the Institute for Energy Economics and Financial Analysis (IEEFA).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They point to the example of EQT, the largest natural gas producer in the United States. A corporate&nbsp;<a href=\"https:\/\/www.wsj.com\/articles\/rice-brothers-win-control-of-eqt-11562769136\" target=\"_blank\" rel=\"noreferrer noopener\">struggle<\/a>&nbsp;over control of the company reached a conclusion recently, with the Toby and Derek Rice seizing power. The Rice brothers sold their company, Rice Energy, to EQT in 2017. But they launched a bid to take over EQT last year, arguing that the company\u2019s leadership had failed investors. The Rice brothers convinced shareholders that they could steer the company in a better direction promising $500 million in free cash flow within two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Their bet hinged on more aggressive drilling while simultaneously reducing costs. Their strategy also depends on \u201cnew, unproven, expensive technology, electric frack fleets,\u201d IEEFA argued. \u201cThis seems like more of the same \u2013 big risky capital expenditures.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">EQT\u2019s former CEO Steve Schlotterbeck recently&nbsp;<a href=\"https:\/\/www.desmogblog.com\/2019\/06\/23\/former-shale-gas-ceo-says-shale-revolution-has-been-disaster-drillers-investors\" target=\"_blank\" rel=\"noreferrer noopener\">made headlines<\/a>&nbsp;when he called fracking an \u201cunmitigated disaster\u201d because it helped crash prices and produce mountains of red ink. \u201cIn fact, I&#8217;m not aware of another case of a disruptive technological change that has done so much harm to the industry that created the change,\u201d Schlotterbeck said at an industry conference in June.&nbsp;<strong><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Will-The-US-Gas-Glut-Cap-Oil-Production.html\" target=\"_blank\" rel=\"noreferrer noopener\">Related: Will The U.S Gas Glut Cap Oil Production?<\/a><\/strong><\/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>U.S. Shale Is Doomed No Matter What They Do With financial stress setting in for U.S. shale companies, some are trying to drill their way out of the problem, while others are hoping to boost profitability by cutting costs and implementing spending restraint. Both approaches are riddled with risk. \u201cTurbulence and desperation are roiling the [&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":[331,6010,23083,827,7893],"class_list":["post-47378","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-fracking","tag-nick-cunningham","tag-oil-price-com","tag-united-states","tag-us-shale-industry"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47378","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=47378"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47378\/revisions"}],"predecessor-version":[{"id":47380,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47378\/revisions\/47380"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}