{"id":7432,"date":"2015-04-20T05:40:52","date_gmt":"2015-04-20T10:40:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7432"},"modified":"2015-04-20T05:40:52","modified_gmt":"2015-04-20T10:40:52","slug":"the-chilling-thing-blackstone-said-about-the-oil-bust","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7432","title":{"rendered":"The Chilling Thing Blackstone Said about the Oil Bust"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/04\/19\/chilling-thing-blackstone-said-about-the-oil-bust-asset-prices\/\" target=\"_blank\">The Chilling Thing Blackstone Said about the Oil Bust<\/a><\/h3>\n<p>Regardless of how troubled oil and gas companies are, \u201cif the assets are good, someone will own them,\u201d\u00a0<a href=\"http:\/\/www.houstonchronicle.com\/business\/energy\/article\/Big-investors-search-for-bargains-in-troubled-oil-6097469.php\" target=\"_blank\">explained<\/a>\u00a0David Foley, senior managing director of Blackstone Energy Partners.<\/p>\n<p>He expected companies to buckle under the load of junk debt and kick off a long series of bankruptcies and assets sales at rock-bottom prices. The question was\u00a0<em>when<\/em>.<\/p>\n<p>That was in February. Private equity firms \u2013\u00a0the \u201csmart money\u201d \u2013\u00a0have been out in force for months, raising tens of billions of dollars, with the promise to their investors that they would pick up assets of all kinds on the cheap. They\u2019ve been circling like vultures, waiting to swoop down and pick the best morsels off the carcasses soon to be strewn about the oil patch.<\/p>\n<p>\u201cThe timing of having that capital available now really couldn\u2019t be better,\u201d Blackstone CEO Steve Schwarzman said at the time. He expected that it would take one-and-a-half years before oil and gas companies would be completely drained of cash and would get into serious trouble. But some of the service companies could run out of money and topple \u201cvery, very quickly,\u201d he said. Over the next couple of years, there would be \u201call kinds of shakeouts.\u201d<\/p>\n<p>PE firms expected\u00a0valuations to plunge much further as assets would hit the auction block. And so Blackstone president Tony James\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-01-29\/blackstone-scrambling-to-invest-in-energy-assets-james-says\">said<\/a>\u00a0that his people were \u201cscrambling\u201d to invest over $10 billion. They were all singing from the same page.<\/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>The Chilling Thing Blackstone Said about the Oil Bust Regardless of how troubled oil and gas companies are, \u201cif the assets are good, someone will own them,\u201d\u00a0explained\u00a0David Foley, senior managing director of Blackstone Energy Partners. He expected companies to buckle under the load of junk debt and kick off a long series of bankruptcies and [&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":[80,195,200,1729,1775,594],"class_list":["post-7432","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-blackstone","tag-debt","tag-default","tag-oil-and-gas-industry","tag-oil-price-collapse","tag-oil-prices"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7432","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=7432"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7432\/revisions"}],"predecessor-version":[{"id":7433,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7432\/revisions\/7433"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}