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Tuesday, June 23, 2020

U.S. Shale Has Lost $300 Billion In 15 Years — Nick Cunningham

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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U.S. LNG Exports Crash By More Than 50%
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6 comments:

  1. 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

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  2. It's a subsidy to energy consumers, domestic and foreign.

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  3. 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...

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  4. https://www.freshbooks.com/hub/accounting/non-cash-expenses

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  5. Depreciation and depletion should be taught to art degrees. Highly relevant accounting concept to most modern art and popular music.

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  6. Doesn’t happen until after they die though Ryan...

    Their moron system runs on death... sad!

    ReplyDelete