All the Jobs in the Shale Oil Patch Are about To Go Down the Drain

The oil boom created by “fracking” is about to go bust because of the low price per barrel of oil. At the current price, it costs too much to get the oil out of the ground. Frackers borrowed too much money to set up their businesses, and needed to sell oil at significantly higher prices to make a profit. According to zerohedge.com, the bankruptcies have just begun:

“There are too many ugly balance sheets,” warns one energy industry analyst, adding simply that “the group is not positioned for this downturn.” While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various ‘statistics’ about how the down-side of low oil prices is ‘contained’ and the huge colossal massive tax cut means ‘everything is awesome’ for America, the data – and now actions – do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come…

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