Commodity Trade Mantra

Posts Tagged ‘American Oil’

The Irony of a Debt-Fueled Oil Boom

The cash has already been drilled into the ground. Now it’s just a matter of getting the oil and gas out to service the debt. The more the price drops, the harder they have to try to increase production. This is the irony of a debt-fueled oil boom that turned into an oil bust: producers cannot back off regardless of how low the oil price may be.

The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming

American oil and gas companies have gone heavily into debt during the energy boom, increasing their borrowings by 55% since 2010, to almost $200 billion. Their need to service that debt helps explain why U.S. producers plan to continue pumping oil even as crude trades for less than $50 a barrel, down 55% since last June.

An Even Better Way to Play Big Oil

Big oil companies thinking conventionally, left the U.S. oil patch years ago & with each step they moved further from conventional oil production. They thought the commercial amounts of US oil were long-gone. And were wrong. Small companies with determined owners cracked the code to America’s shale plays.

US to Become Less Dependent on Foreign Oil

The US Energy Information Administration released on Tuesday an early version of its Annual Energy Outlook for 2014. The main item being that the United States will continue to develop its own oil and to press for more efficient cars in order to reduce demand on oil.

The Shale Oil Boom is More of a Mirage than a Miracle

Shale oil plays are going to be probably much less than a 10-year flash in the pan. They are very dependent on a lot of different things, including low interest rates and the ability to keep borrowing – which could turn around very quickly. Lower oil prices would tend to do the same thing.

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