Cartoon Of the Week
The American shale oil industry better pray OPEC keeps prices propped up; the low $50's would be another nail in its coffin at the moment. Its facing $65 billion in debt maturities in the next 12 months. Nobody is making any money, still, and capital is getting harder and harder to come by. If I was in the stinkin's shale oil business I'd be sending flowers to Vienna every day.
And all the horse dookey about mergers and acquisitions, consolidations, and efficiency of scale saving the day in the shale patch? Ain't happening, man. Why? Cause nobody has got any money and taking on more debt, and more drilling commitments, with no place to put the product, is dumb... that's why. They have not even closed on the Anadarko/ Oxy thing yet.
The stock only, Callon and Carrizo "merger" that happened today is swappin' spit, nothing more.
Check back with us soon to know how big the compensation package were for jefes at Carrizo. And check out this guy "Mr. Skilling," on Twitter...he hates the shale oil BS and is a hoot. Click the link: