It seems Wall Street has finally changed there positions and are now activating the media to expose truth that has been known for years... US Shale Ponzi! Exxon in 2018 spent 7.7 Billion in US Capex, yet US earnings were only 1.7 Billion https://www.wsj.com/articles/shale-...s-threaten-future-of-u-s-oil-boom-11551655588 https://outline.com/Bt9X5V https://oilprice.com/Energy/Energy-General/Wall-Street-Loses-Faith-In-Shale.html https://oilprice.com/Energy/Crude-Oil/Be-Wary-Of-Unrealistic-Shale-Growth-Expectations.html
US Shale has always been in the business of taking money, not making money... Bond holders will be left with the bag, hundreds of billions! Not much monetary recovery from E&P Bankruptcies. Good money can be made shorting Industrial bonds
So they discovered that if instead of one man drinking in a bar there are 2-3 drinkers than the bar will run out of alcohol sooner? Genius...
Not really that... It's been known for years child wells produce much less then parent wells, which were used as production measures to pitch investors holding the bag. Parent Wells are all gone now, it is strictly child wells in Permian and Bakkan. Production expectations have been a lie the whole time, the actual reality of production is a lot less then what they pitch in there earnings calls or when they need borrow more debt. With credit tightening and all the suckers having been fleeced, now reality is starting to come out in main stream media cause the big Banks changed there positions. I believe within 1 year, production will be highly affected and within 5-8 years US Oil Shale is done... Exxon lost 6 Billion in 2018 from there US Shale Operations
I don't know... I would assume no, it's likely gonna keep heading down in the short term with recession the world is in