The U.S. shale industry peaked without ever making money. Over the past decade and a half, the shale industry totaled $300 billion in net negative cash flow, wrote down another $450 billion in invested capital, and saw more than 190 bankruptcies since 2010, according to a new report from Deloitte. The U.S. shale industry more than doubled oil production over the past half-decade, a phenomenal increase in output. But “the reality is that the shale boom peaked without making money for the industry in the aggregate,”.…Oilprice
U.S. Shale Has Lost $300 Billion In 15 Years
Nick Cunningham
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6 comments:
US fracking boom was a financial "innovation" success story.
Lease holders made a bundle:
https://www.bloomberg.com/news/features/2018-09-12/meet-the-shalennials-ceos-under-40-making-millions-in-texas-oil
It's a subsidy to energy consumers, domestic and foreign.
They use Accrual Method like Amazon ... depreciation expense always exceeds revenue so they always can show a break even or even loss so the entity doesn’t have a tax liability...
Everybody involved can still make taxable bazillions but the entities don’t pay taxes...
It’s like real estate...
https://www.freshbooks.com/hub/accounting/non-cash-expenses
Depreciation and depletion should be taught to art degrees. Highly relevant accounting concept to most modern art and popular music.
Doesn’t happen until after they die though Ryan...
Their moron system runs on death... sad!
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