{"id":6637,"date":"2015-03-19T07:59:08","date_gmt":"2015-03-19T12:59:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6637"},"modified":"2015-03-19T07:59:08","modified_gmt":"2015-03-19T12:59:08","slug":"investors-crushed-as-us-natural-gas-drillers-blow-up","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6637","title":{"rendered":"Investors Crushed as US Natural Gas Drillers Blow Up"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/03\/18\/natural-gas-drillers-fracking-junk-bonds-leveraged-loans-bankruptcy-default\/\" target=\"_blank\">Investors Crushed as US Natural Gas Drillers Blow Up<\/a><\/h3>\n<p>The Fed speaks, the dollar crashes. The dollar was ripe. The entire world had been bullish on it. Down nearly 3% against the euro, before recovering some. The biggest drop since March 2009. Everything else jumped. Stocks, Treasuries, gold, even oil.<\/p>\n<p>West Texas Intermediate had been experiencing its biggest weekly plunge since January, trading at just above $42 a barrel, a new low in the current oil bust. When the Fed released its magic words, WTI soared to $45.34 a barrel before re-sagging some. Even natural gas rose 1.8%. Energy related bonds had been drowning in red ink; they too rose when oil roared higher. It was one heck of a party.<\/p>\n<p>But it was too late for some players mired in the oil and gas bust where the series of Chapter 11 bankruptcy filings continues. Next in line was Quicksilver Resources.<\/p>\n<p>It had focused on producing natural gas. Natural gas was where the fracking boom got started. Fracking has a special characteristic. After a well is fracked, it produces a terrific surge of hydrocarbons during first few months, and particularly on the first day. Many drillers used the first-day production numbers, which some of them\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/2015-01-23\/tests-for-oil-guisher-seens-as-misleading-to-investors.html\" target=\"_blank\">enhanced in various ways<\/a>, in their investor materials. Investors drooled and threw more money at these companies that then drilled this money into the ground.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors Crushed as US Natural Gas Drillers Blow Up The Fed speaks, the dollar crashes. The dollar was ripe. The entire world had been bullish on it. Down nearly 3% against the euro, before recovering some. The biggest drop since March 2009. Everything else jumped. Stocks, Treasuries, gold, even oil. West Texas Intermediate had been [&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":[2,3],"tags":[303,305,331,412,554,827,1451,895],"class_list":["post-6637","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-fed","tag-federal-reserve","tag-fracking","tag-hydraulic-fracturing","tag-natural-gas","tag-united-states","tag-west-texas-intermediate","tag-wti"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6637","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=6637"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6637\/revisions"}],"predecessor-version":[{"id":6638,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6637\/revisions\/6638"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}