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Frackers Face Harsh Reality as Wall Street Backs Away

wsj.com

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Re: Frackers Face Harsh Reality as Wall Street Backs Away

#71

Post by baud147258 »

panarky wrote: post #19

I'd love to see an unbiased analysis of the long-term economics of an individual shale well. There's some data that indicates volumes drop off pretty dramatically over time at the individual well level. If this is true, then it requires perpetual investment of new capital in new wells just to maintain constant production volumes. The public data isn't great because old wells are mixed in with new wells and so it's ha…

> There's some data that indicates volumes drop off pretty dramatically over time at the individual well level. If this is true, then it requires perpetual investment of new capital in new wells just to maintain constant production volumes.

I discussed a few years ago this with my brother who's working in the oil industry. And he said that much, this type of well have much shorter lifespan than traditional oil well and new wells are required every few years. Of course it's just an anecdote from someone who's not even involved in that part of the industry, so take it with a grain of salt.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#73

Post by athollywood »

imglorp wrote: post #53
athollywood wrote: post #15

Speaking as an employee at one of the largest independent E&P’s, we haven’t relied on debt and equity financing in the last few years because we have had enough free cash flow. The only thing slowing us down really is things like pipeline takeaway and labor shortage.

This might be an unpopular idea among the fossil money and investment people, but as a victim and witness to pipeline activity by an unscrupulous corporation, I would suggest that there are a mountain of unstated risks and hidden costs. This example [1] pipeline has state and local criminal and civil legal issues, spills, runoff, poisoned wells, sinkholes, inestimable property value loss, loss of use, an explosion, a…

Not disagreeing with any of what you said, however I encourage you to consider the alternatives of pipelines. Rail and trucking typically have a significantly higher spill rate.

https://www.iaee.org/en/publications/newsletterdl.aspx?id=46...

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#74

Post by athollywood »

lotsofpulp wrote: post #56
objektif wrote: post #48

Earlier quoted context omitted.

The pay is good but working conditions?

Then the pay is not good enough.

The pay is good enough but their are other constraining factors when it comes to extreme rapid growth in an area. Housing shortages are one example.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#75

Post by imglorp »

athollywood wrote: post #73
imglorp wrote: post #53

Earlier quoted context omitted.

This might be an unpopular idea among the fossil money and investment people, but as a victim and witness to pipeline activity by an unscrupulous corporation, I would suggest that there are a mountain of unstated risks and hidden costs. This example [1] pipeline has state and local criminal and civil legal issues, spills, runoff, poisoned wells, sinkholes, inestimable property value loss, loss of use, an explosion, a…

Not disagreeing with any of what you said, however I encourage you to consider the alternatives of pipelines. Rail and trucking typically have a significantly higher spill rate. https://www.iaee.org/en/publications/newsletterdl.aspx?id=46...

That's a great discussion to be had, as well as the costs of burning stuff in general versus alternatives.

What I wanted to emphasize was, (1) we never had that tradeoff discussion at any level of government or community; it was forced on us, (2) there was substantial undisclosed activity that investors are probably not aware of, and (3) the overall shitty behavior by the company will have many long term negative effects on how we do public works.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#76

Post by lotsofpulp »

athollywood wrote: post #74
lotsofpulp wrote: post #56

Earlier quoted context omitted.

Then the pay is not good enough.

The pay is good enough but their are other constraining factors when it comes to extreme rapid growth in an area. Housing shortages are one example.

True, but that's part of the issue. Volatility affects people's lives, and they need to be paid extra to deal with it (assuming they have other options). Moving around a lot, living in the middle of nowhere, inconsistent income due to changing markets, these are all negatives that need to be compensated for in the wages.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#77

Post by Agathos »

mirimir wrote: post #34
Gibbon1 wrote: post #20

Earlier quoted context omitted.

My prediction is the fracking industry will go bankrupt like the nuclear and coal industries.

One can hope.

A setback for fracking would be the best thing that could possibly happen to coal.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#78

Post by Gibbon1 »

Agathos wrote: post #77
mirimir wrote: post #34

Earlier quoted context omitted.

One can hope.

A setback for fracking would be the best thing that could possibly happen to coal.

Coal is dead man walking because wind and solar beat them both on price. Coal went bankrupt and will go bankrupt again.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#79

Post by Gibbon1 »

hermitdev wrote: post #58
Gibbon1 wrote: post #23

Earlier quoted context omitted.

You're talking about development of solar prior to 2000. I'm talking about after 2000. The big investment in solar production was at the behest of the Chinese government. They are the ones that spent the hundreds of billions needed to commercialize solar, not the US. At the same time the US spent a $1T on fracking. And a couple of $T on pointless wars.

> US spent a $1T on fracking Citation? I suspect this a grossly over stated figure. Edit: formatting

WSJ article recently pointed out that the Fracking industry lost $280 Billion over the last 10 or so years.

Re: Frackers Face Harsh Reality as Wall Street Backs Away

#80

Post by jessaustin »

arcticbull wrote: post #50
jessaustin wrote: post #43

Earlier quoted context omitted.

You shouldn't assume that your climate is the same as the one GP referenced.

The climate is harsher than -25C/-15F in the winter?

GP cited Netherlands. No way that's a typical temperature.
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