The economic impact that the collapse of the shale oil industry is twofold:
1. Cheaper gasoline
2. Lower GDP and higher unemployment
As your pResident boasts about his economic (hamburger flipper) recovery, the only real bright spot was the shale oil related jobs. As we will see in the very near future, the loss of these jobs may be the catalyst for recession and the impetus to print more money by the Federal Reserve. But more likely, it will be the catalyst for war.
You may as well enjoy the savings from the lower price of gas: you will need it and more to pay for “affordable” health care.
David DeGerolamo
The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming
There are too many ugly balance sheets,” warns one energy industry analyst, adding simply that “the group is not positioned for this downturn.”While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various ‘statistics’ about how the down-side of low oil prices is ‘contained’ and the huge colossal massive tax cut means ‘everything is awesome’ for America, the data – and now actions – do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come…
In December we illustrated the problem names (in the publicly traded markets) among the most-levered energy companies in America…
