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[–] 15505357? ago 

Hell yeah, frack that bitch!!! What could possibly go wrong??

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[–] 15505207? ago 

"Shale oil" is a ponzi scheme.

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[–] 15505181? ago  (edited ago)

From https://srsroccoreport.com/u-s-shale-oil-industry-catastrophic-failure-ahead/

Shale Oil Industry: Deep The Denial

According to a recently released article by 40-year oil industry veteran, Mike Shellman, “Deep The Denial,” he provided some sobering statistics on the shale industry:

"I recently put somebody very smart on the necessary research (SEC K’s, press releases regarding private equity to private producers, etc.) to determine what total upstream shale oil debt actually is. We found it to be between $285-$300B (billion), both public and private. Kallanish Energy Consultants recently wrote that there is $240B of long term E&P debt in the US maturing by 2023 and I think we should assume that at least 90 plus percent of that is associated with shale oil. That is maturing debt, not total debt.

… By year end 2019 I firmly believe the US LTO industry will then be paying over $20B annually in interest on long term debt.

Using its own self-touted “breakeven” oil price, the shale oil industry must then produce over 1.5 Million BOPD just to pay interest on that debt each year. Those are barrels of oil that cannot be used to deleverage debt, grow reserves, not even replace reserves that are declining at rates of 28% to 15% per year… that is just what it will take to service debt.

Using its own “breakeven” prices the US shale oil industry will ultimately have to produce 9G BO of oil, as much as it has already produced in 10 years…just to pay its total long term debt back."

Using Mike’s figures, I made the following chart below:

For the U.S. Shale Oil Industry just to pay back its debt, it must produce 9 billion barrels of oil. That is one heck of a lot of oil as the industry has produced about 10 billion barrels to date. Again, as Mike states, it would take 9 billion barrels of shale oil to pay back its $285-300 billion of debt (based on the shale industry’s very own breakeven prices).

Furthermore, the shale industry may have to sell a quarter of its oil production (1.5 million barrels per day) just to service its debt by the end of 2019. According to the EIA, the U.S. Energy Information Agency, total shale oil (tight oil) production is now 6.2 million barrels per day (mbd):

The majority of shale oil production comes from three fields and regions, the Eagle Ford (Blue), the Bakken (Yellow) and the Permian (light, medium & dark brown). These three fields and regions produce 5.2 mbd of the total 6.2 mbd of shale production.

Unfortunately, the shale industry continues to struggle with mounting debt and negative free cash flow. The EIA recently published this chart showing the cash from operations versus capital expenditures for 48 public domestic oil producers:

You will notice that capital expenditures (brown line) are still higher than cash from operations (blue line). So, it doesn’t seem to matter if the oil price is over $100 (2013-2014) or less than $70 (2017-2018), the shale oil industry continues to spend more money than it’s making. The shale energy companies have resorted to selling assets, issuing stock and increasing debt to supplement their inadequate cash flow to fund operations.

A perfect example of this in practice is Pioneer Resources… the number one shale oil producer in the mighty Permian. While most companies increased their debt to fund operations, Pioneer decided to take advantage of its high stock price by raising money via share dilution. Pioneer’s outstanding shares ballooned from 115 million shares in 2010 to 170 million by 2017. From 2011 to 2016, Pioneer issued a staggering $5.4 billion in new stock:

So, as Pioneer issued over $5 billion in stock to produce unprofitable shale oil and gas, Continental Resources racked up more than $5 billion in debt during the same period. These are both examples of “Ponzi Finance.” Thus, the shale energy industry has been quite creative in hoodwinking both the shareholder and capital investor.

Now, there is no coincidence that I have focused my research on Pioneer and Continental Resources. While Continental is the poster child of what’s horribly wrong with the shale oil industry in the Bakken, Pioneer is a role model for the same sort of insanity and delusional thinking taking place in the Permian.

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[–] 15505165? 0 points 1 point (+1|-0) ago 

Wave Anomoly was MOST LIKELY a Resonance burst to map the planet at one time. Just saying.

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[–] 15511039? ago 

Did these waves show the firmament?

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[–] 15505162? 0 points 1 point (+1|-0) ago 

It is "shale" oil, not conventional oil. That means that it is going to be more expensive to extract than the value that is obtained from burning it.

In other words, it is going to be another debt-fueled ponzi scheme, a scam.

The following is from https://srsroccoreport.com/the-coming-collapse-of-u-s-shale-oil-production/

*"Still Losing Money Producing Shale Oil In The Permian"

While the Permian Basin is now the largest shale producing region in the United States, companies are still struggling to make a profit. For example, the largest producer in the Permian, Pioneer Resources, suffered a negative $248 million in free cash flow during the first half of 2018.

Pioneer Resources spent $1.6 billion on capital expenditures in the first half of 2018 to increase production by 21,000 barrels per day of oil equivalent. According to Pioneer’s Q2 Press Release, their Permian oil production increased from 251,000 Boe (barrels of oil equivalent) at the beginning of 2018 to 272,000 Boe in the Q2 2018. That is one hell of a lot of money to increase production only increase production by a mere 8%.

So, Pioneer continues to spend more money on capital expenditures than they receive from cash from operations. And the reason for that is the severe decline rate that plagues the shale industry. If we look at the following chart, we can see just how steep the decline rate was based on 2017 production:...*

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[–] 15505628? ago 

Exactly. We've always known this stuff exists but it's terribly low EROI. Another scam like ethanol.

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[–] 15505087? [S] ago  (edited ago)

This reserve is probably one of many with unknown dimensions that could be cataloged if you had sensors available and could send a seismic wave around the world. In fact, if you had space tech you might be able to map reserves all over the world.

Just thinking of uses for the Q wave. 😉

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[–] 15508125? ago 

I'm thinking the wave Q was referencing has a higher calling than oil.

Who has Telsa's free energy formulas? Who has the balls to release it and destroy the oil baron's wealth? Do certain things have to be in place to NOT collapse the world's economy before it's released?

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[–] 15510958? [S] ago 

Interesting theory. The perspective for free energy might balance out the losses to our energy business.