{"id":57834,"date":"2021-05-13T07:01:26","date_gmt":"2021-05-13T12:01:26","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57834"},"modified":"2021-05-13T07:01:26","modified_gmt":"2021-05-13T12:01:26","slug":"struggling-to-make-a-profit-fracking-investors-are-searching-for-the-exit","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57834","title":{"rendered":"Struggling to Make a Profit, Fracking Investors are Searching for the Exit"},"content":{"rendered":"
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Struggling to Make a Profit, Fracking Investors are Searching for the Exit<\/a><\/h3>\n<\/div>\n<\/div>\n
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Banks and investors have given up on the U.S. fracking industry, which is bad news for current investors who waited too long to get out.<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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Derricks<\/a>\u00a0Credit: Pay No Mind\u00a0(CC BY-SA 2.0)\u00a0<\/a>and\u00a0Going out of business sign<\/a>\u00a0Credit: Michael Steeber\u00a0(CC BY-SA 2.0)\u00a0<\/a>Photos adapted by: Justin Mikulka<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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The outlook is increasingly bleak for oil and gas companies. The beginning of this year has seen the highest number of companies\u00a0announce bankruptcy during the first quarter<\/a>\u00a0in five years. Eight oil and gas companies announced they were filing for bankruptcy during the first quarter of 2021.<\/p>\n

Meanwhile, earlier this month\u00a0The Financial Times<\/a>\u00a0noted that of 500 privately owned oil and gas companies in the U.S., 400 are losing money and unlikely to ever pay back their large debts. According to the Financial Times, the remaining companies are focused on a \u201clast gasp\u201d effort to look profitable to potential buyers in order to \u201csecure a profitable exit.\u201d<\/p>\n

If they can\u2019t secure a \u201cprofitable exit\u201d that will help them pay back their debts, the most likely outcome is bankruptcy.<\/p>\n

As Adam Waterous, head of the private equity group Waterous Energy Fund, told the Financial Times: \u201cThis business is broken. The industry is going through a multiyear process of wringing capital out of the sector, not bringing new capital in.\u201d<\/p>\n

Investors appear to be done with the fracking industry as they realize that the only people making money are the Wall Street banks and shale company executives. With investors losing interest in the fracking industry \u2014 and banks no longer interested in loaning money to fracking companies\u00a0 \u2014\u00a0 there is a lack of new money available to prop up the struggling fracking business model.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

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Struggling to Make a Profit, Fracking Investors are Searching for the Exit Banks and investors have given up on the U.S. fracking industry, which is bad news for current investors who waited too long to get out. Derricks\u00a0Credit: Pay No Mind\u00a0(CC BY-SA 2.0)\u00a0and\u00a0Going out of business sign\u00a0Credit: Michael Steeber\u00a0(CC BY-SA 2.0)\u00a0Photos adapted by: Justin Mikulka […]<\/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":[63,5317,331,11782,1729,860],"class_list":["post-57834","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-banks","tag-desmog-blog","tag-fracking","tag-justin-mikulka","tag-oil-and-gas-industry","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57834","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=57834"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57834\/revisions"}],"predecessor-version":[{"id":57835,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57834\/revisions\/57835"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}