Nick, first shale going bust, now $5.2 trillion subsidies. Where do you get your research from AOC ?

[Falcon + 222]

I don't understand why some root for shale to fail.

[Douglas Buckland + 6,308]

Falcon,

I really don't think that anyone is 'rooting' for shale to fail. I think that originally the discussions centered around the long term viability and sustainability of the shale industry on both the technical and financial fronts.

The discussions have now devolved into a 'shouting match' between those who feel that the shale game is viable and sustainable and those who do not.

The discussions have become so polarized and rabid that it now looks like the climate change issue.

Many knowledgeable people, from both sides of the debate, have simply decided to no longer participate.

[ceo_energemsier + 1,818]

On 5/13/2019 at 6:16 AM, Falcon said:

I don't understand why some root for shale to fail.

Some dont want to know or hear anything besides their own horn tootin, or rinse and repeat numbers from the past.

Not all companies survive, not all companies make a profit in a few years, not all companies succeed. Some shale extremely bloated, they got their bubbles burst and it will happen again. The issue was technology and its place in shale. Some say there has been zero new tech for shale , its all old, well kind sirs, new technology doesnt just pop up overnight, technology evolves from old and new, you use a combination of various techs to make things work. A biotech, a pharma company fail in their R&D so all of their other projects are bad failures too? look at how much money and time is required by biomed companies, by pharma companies and IOT and tech companies to bring forth something to the market and they keep using the same tech to improve upon and launch into something better and newer. Same thing with shale. Obviously most of the people have an agenda against shale or have lost big in shale. Either way, some folks just dont want to hear or know about hundreds and hundreds of new breakthroughs from seismic processing and interpretation to proppant tech, or waterless fracturing, or gasfracs, or hitech rigs, walking talking rigs, or the successes of multi well pad drilling, because it is all old.

So is heart surgery it keeps on improving everyday as are organ transplants and from growing bacteria in petri dishes, we are now growing cells and tissues for entire organ growths.

Cheers!

[Old-Ruffneck + 1,246]

On ‎5‎/‎13‎/‎2019 at 7:16 AM, Falcon said:

I don't understand why some root for shale to fail.

Too much money, will fail in some time in the future, not sure when, but HAS been a boon to the oil economy. I suspect some folks lost money. 

Edited May 15, 2019 by Old-Ruffneck

[Douglas Buckland + 6,308]

1 hour ago, ceo_energemsier said:

Some dont want to know or hear anything besides their own horn tootin, or rinse and repeat numbers from the past.

Not all companies survive, not all companies make a profit in a few years, not all companies succeed. Some shale extremely bloated, they got their bubbles burst and it will happen again. The issue was technology and its place in shale. Some say there has been zero new tech for shale , its all old, well kind sirs, new technology doesnt just pop up overnight, technology evolves from old and new, you use a combination of various techs to make things work. A biotech, a pharma company fail in their R&D so all of their other projects are bad failures too? look at how much money and time is required by biomed companies, by pharma companies and IOT and tech companies to bring forth something to the market and they keep using the same tech to improve upon and launch into something better and newer. Same thing with shale. Obviously most of the people have an agenda against shale or have lost big in shale. Either way, some folks just dont want to hear or know about hundreds and hundreds of new breakthroughs from seismic processing and interpretation to proppant tech, or waterless fracturing, or gasfracs, or hitech rigs, walking talking rigs, or the successes of multi well pad drilling, because it is all old.

So is heart surgery it keeps on improving everyday as are organ transplants and from growing bacteria in petri dishes, we are now growing cells and tissues for entire organ growths.

Cheers!

I rest my case...

[DanilKa + 443]

7 hours ago, Douglas Buckland said:

I rest my case...

Edited May 15, 2019 by DanilKa

[DanilKa + 443]

6 hours ago, Douglas Buckland said:

I rest my case...

Me too...

Concept of negative free cash flow is hard to grasp, its not for everyone. Smarter companies out there swapped debt for equity so they are less exposed hikes in interest rate. Not that it returns value to shareholders

[Danlxyz + 63]

Speaking as an ex-accountant, shale oil companies are highly suspect because the do not yet generate positive free cash flow. That is, cover all operating and overhead expenses and buy new inventory to replace what is used in production.  They continually have to raise funds by borrowing or selling stock. 

Sometimes there are valid reasons to raise additional funds such as to buy properties and equipment or to grow the business but continually borrowing indicates a problem. Net income is necessary for a business but a positive free cash flow is the proof that the accountants aren't blowing smoke.