Mike Shellman's Cartoon of the Week _ 29th Sept

The inimitable @Mike Shellman writes again.

Worth paying attention to.

Cartoon Of the Week

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In spite of higher oil prices, rising natural gas prices and much higher well productivity, only 21% of US shale industry's CAPEX requirements for 2019 will come from cash flow. A whopping 78% of all shale oil, shale gas companies  and lenders surveyed In September 2018  by Haynes and Boone expect to INCREASE their respective borrowing bases in in 2019.

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Wow, very revealing stats!

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It works for the Federal Government, why not shale oil and gas?

P.S. I don't want an answer. Personally found of retained earnings paying the way, or investors betting on the cash flow.

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Simple reason - most shale companies have bought hedges. That reduces profitability by a lot. 

Take away volatility and oil becomes unprofitable.

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