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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A European Prediction: American Civil Unrest in 2015

This is a ballsy prediction by a European economic analyst at Armstrong Economics:

The American Revolution would never have taken place but for the king doing the same thing as the NSA right now – going into people’s private homes searching for whatever they do, and then charging them for whatever. John Adams said there and then the revolution was born. The American Revolution was a response to oppressive behavior of the king. The NSA and Congress cannot see what they are doing is abusive, demeaning, and lowers the respect for them in the eyes of everyone but the sublime fool. Their abuse sets the stage for eventual civil unrest that is then sparked by the economic decline that will begin 2015.

Do You Remember Signs that Read “The End Is Near”?

Tyler Durden's picture

Guest Post: How Does It End?

Submitted by Tyler Durden on 06/14/2013 – 11:32

The days of reasonable economic forecasting are over. Today, an economic forecast is more like the analysis of a criminal mind than the evaluation of economic data. The dominating role of government overpowers markets intentionally. In the short-term that will continue. Reactions to Federal Reserve minutes referencing continuation, alteration or cessation of quantitative easing cause stock markets to move by over 100 points. Other markets are affected by government interventions, just not so noticeably. Long term, markets will overpower government. Welfare states can no longer maintain their level of spending, services and welfare. However, they dare not stop lest civil unrest and violence break out. The bind they are in has no solution. Governments around the world are doing whatever is necessary to survive. Lying, stealing and outright confiscation will begin in order to support their bankruptcies. Cyprus was a minor precursor of what is coming.