US write-downs equivalent to ‘bank bailouts’ for fracking

It seems that fracking continues to haemorrhage investor’s cash…

By my calculations $16 billion of write-offs definitely (those which could be substantiated through company reports); perhaps $25-$30 billion if you include the finance sector. A recent report from the Oxford Institute for Energy Studies (OIES) puts the figure at $35 billion. The OIES is not your average ‘bunch of greenies’ - they are hard headed energy economists.
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See page 4 of their recent report - US shale gas and tight oil industry performance: challenges and opportunities, Ivan Sandrea, OIES Research Associate, Oxford Institute for Energy Studies, March 2014.

Write Downs
Since the shale boom began, related write-downs by several of the largest shale players are now approaching $35bn, suggesting that some of these plays will not meet original technical and business expectations. Most of these large write-downs have been made by foreign players but also by some US players too. If one adds all unconventional-related write-downs, from both US and non-US companies, made during the last 10 years, the figure of write-downs increases significantly.”

If you want to put $35,000,000,000 into perspective, there’s a list of recent US bailouts here.

So, more than JP Morgan, but not quite CitiGroup!

(Original article by: Paul Mobbs)

Related articles: Is the U.S. Shale Boom Going Bust?
Other articles by Paul Mobbs: Behind every picture lies a story
Picture Link: Fracking Wells Abandoned in Boom/Bust Cycle. Who Will Pay to Cap Them?

REAF Collaborate on Frack Free Food Campaign

Resident groups and environmental organisations from across Lancashire have joined together to plan opposition to the fracking industry in the county.lfffa_launch_preston_small.jpg

A dozen groups met in Preston city centre to share information on forthcoming applications by Cuadrilla for multi-well frack sites in the Fylde, and a current application to extend their operations at the Banks site in West Lancashire. The Banks site, where Cuadrilla have previously broken planning conditions designed to protect wintering birds, is on the edge the wildlife-rich Ribble Estuary and in an important farming area.

The groups also launched the Lancashire Frack Free Alliance which aims to unite farmers, chefs, restaurants and consumers to protect the local food economy from a large-scale fracking industry.

The groups in attendance were Central Lancashire Friends of the Earth, Defend Lytham, Frack Free Fylde, Garstang Against Fracking, Lancaster Against Fracking, Longridge Against Fracking, Preston Greenpeace, Residents Action on Fylde Fracking, Ribble Estuary Against Fracking, Roseacre Awareness Group, Singleton Against a Fracked Environment, Southport Friends of the Earth

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