Russia and Saudi Arabia argue in the Oil market, American companies are the losers. The price decay on the covers relentlessly, how massively the US producers have been in debt and never constant profit could be achieved. The Fracking Boom of the last 15 years that has brought the country to the top in the world, the USA is too expensive. Unlike in previous downturns, investors should not be longer willing to sink money into an industry that is increasingly being replaced by Solar and wind energy.
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"The growth of Fracking has come to an abrupt stop," explains Raoul LeBlanc, Vice-President of the market research company IHS, the situation after the price of Oil has seen the biggest collapse of the last 30 years. The break Out of tiny Oil - and gas bubbles from the Rock, has come to a point where the technology can be further optimized. "What could be achieved, was achieved," says LeBlanc, "the best reserves are expected to be depleted in about five years."
that's Why investors are not more likely to return, unlike the last price correction, six years ago, this time quickly in debt. An indication of this new, increased caution delivered to the markets yesterday. After the massive slump from Monday the dealers of Conviction; the share of the smaller U.S. Oil companies fell on the stock exchange.
Halliburton, for example, one of the great profiteers of Fracking, is only rated with a good seven billion dollars, ten times less than three years ago. Whiting Petroleum, a pioneer in Fracking in North Dakota, is only $ 67 million in value, approximately 500 times less than to the best times of the boom. A bankruptcy is getting closer than ever. Whiting is indebted to the numerous small and medium-sized producers in the extreme, and needs an Oil price of at least $ 50 per Frass, to be able to alone cover the cost. According to a UBS study attributed to the American Oil companies this year optimistic, with a barrel price of 50 to 55 dollars. At the current prices, you write deep red Numbers; the cash flow is reduced by up to 39 percent.
The American Oil industry soared in recent years thanks to the Fracking of the largest producers in the world. The United States are first to rely for a long time on imports from Saudi Arabia. You can run, on the contrary, a third of the daily production of 13 million barrels and have since last November generated a surplus for export. This success stands out Saudi Arabia and Russia alike, say the US market analysts. Both countries arguing their influence on the world market and see the US increasingly as an annoying disturbance of the peace.
The escalation is not only, but also as an attack on the American Fracking industry to see, says Scott Sheffield, Head of the Texan Pioneer Natura resources. "A lot of companies will go bankrupt. We need to adjust our capital and our labour force, to balance the balance sheet."
Specifically, this means layoffs and less investment. Halliburton, Schlumberger and several medium-sized producers have already spoken several Thousand layoffs; but even the giants of the industry, Exxon and Chevron suffer. You have achieved despite huge investments never make a Profit with Fracking and are now forced to also save costs. The only way you can pay her rich dividends and the shareholders an exit store.
the victim of its own success
"The fear of draining the oil Industry, the necessary capital and reduces the lousy yields," says LeBlanc. The number of Bankruptcies increased last year significantly. 44 production companies with debt of 26 billion dollars (twice as much as in the previous year) registered a bankruptcy. Since this and next year, according to the Institute for Energy Economics and Financial Analysis more than $ 100 billion falls due, expect more bankruptcies to. "It is, it is difficult to see a light at the end of the tunnel," writes financial analyst Kathy Hipple.
to a certain degree, the Fracking industry has also been a victim of its own success. Thanks to increasingly sophisticated methods to discover are the last reserves in rock layers and to squeeze out, could you increase production faster than ever expected. The stocks are exploited in a few years.
part of the neighboring businesses are not cannibalizing each other even, and press your income each other. The Laissez-faire policy of the government trump contributed to a wild growth. It comes in November to a change of government, threaten to stricter regulations, which is why a consolidation will be in the hands of a few large corporations, according to the UBS inevitable.
Created: 10.03.2020, 21:24 PMUpdated Date: 11 March 2020, 04:03