Owing to the extensive spread of the pandemic coronavirus and associated fall in demand and oil prices, shale oil and gas in the United States faced a deep crisis. 28 Jun bankruptcy announced the largest and oldest American shale Chesapeak Energy company. Behind her so would be forced to do and the other players on the market of shale oil in the United States.
28 Jun Chesapeak Energy filed in U.S. district court of southern Texas statement of application in relation to the 11 article of the Federal Law on bankruptcy (the law on bankruptcy of private companies in Japan).
Chesapeak Energy is a kind of “mastodon” shale oil and gas US market. The company exists for over 30 years and is known for the fact that he uses the most advanced technology of production of shale oil from deep shale deposits. The company is known for its aggressive policy in the sphere of investments and development of new technologies of oil production. Despite hanging on her debt obligations in the amount of up to $ 10 billion, Chesapeak Energy up to the last struggled for their existence. And finally gave up.
In the first quarter of 2020 Chesapeak Energy registered in the U.S. the national Commission on securities total net losses of $ 8.3 billion. A further 3.9 billion of its debt obligations.
Chesapeak Energy company was established in 1989 by well-known entrepreneur by Aubrey McClendon (died in a car accident in 2016) and marked the “shale revolution” in the United States. For many years the company’s business has been booming. However, with the fall in oil prices in 2015-2016, she began to experience financial and operational difficulties. Held this year deal OPEC+ and the severe consequences of a global pandemic coronavirus caused Chesapeak Energy a deadly blow from which it never recovered.
Numerous experts, both American and international, suggests that the case Chesapeak Energy is only a small visible part of the iceberg. Shale oil in connection with the high cost of its production is not competitive on world markets, especially with similar light varieties from the Middle East. According to specialized studies, currently in the main region of its production in the USA — Texas and adjacent areas — more than 80% of the deposits of shale oil production is suspended.
As pointed out by the independent analytical Agency Rystad Energy, the oil shale industry in the United States at this time was about 9,000 mining companies (the vast majority of small businesses are family business, 70% of deposits belong to only the 50 largest firms). When the price of WTI at the level of $ 30 per barrel in 2020 will bankrupt 73 of them, and 2021 — 170. According to the Agency, the minimum level of profitability for shale oil is that it cost about 40-45 dollars per barrel.
Comments Japanese readers
Sakemoto Masao
Well, finally! Shale oil nothing helps. The US government with its subsidies has set a goal to bring its value to at least 41 dollars per barrel. As she “dangles” below $ 37, although conventional crude oil on the market is worth $ 40. The fall in prices on “oil shale” can’t stop the terrible pandemic of coronavirus in the U.S. and the rampant anarchy and violence in connection with racial discrimination.
sobaya 11
If we went bankrupt “mastodon” shale oil with a 30-year history, then what to speak of others?
tetsuo takotiho
Bankruptcy shale oil companies in the USA follow one after another. Now what will make the American administration, in terms of protection from foreign competition? Will continue this policy and attacks on Russia? Or again implement a new intervention in the middle East?
mimo saccherry
The largest oil shale company in America went bankrupt. Another 80% of the suspended extraction of shale oil and gas. That the “shale revolution” end? And how much was the cry!
winchangyo
Yes, interesting info! Apparently, in the US something has gone wrong!
motmot
Well, that came the day of reckoning for the us shale industry. She was so overloaded with debts, and the administration trump all tried to get her out. Whether she will have time to recover before the next wave of falling oil prices?
donndoko
Wanted America to eat the Russian and Saudi caruncle, choked on the bones!
tom
Deftly OPEC+ beat America!
Rocky road
The company Chesapeak Energy has long been the “candidate elimination”. Kept on government support. Here they are, the tragedy of shale oil. And founder Aubrey McClendon died under mysterious circumstances, and the company went bankrupt…
xmu
As expected. Went against the environment and against people. And here is the final!
met
And all the while America interferes! The plans of Russia and OPEC, the pandemic coronavirus!
qwe
Well, that’s the end of beautiful stories?! And 7-8 years ago many were bragging that America is insanely rich in shale oil… so what happened really?
tak
I think, for the greedy Japanese investors does not pass in vain. Certainly suffer a substantial loss!
nor
Well, amerikadaki? Have remained, like all the only choice is: either by an adult normally buy oil in the middle East, or to develop energy-saving technologies.
min
Russia and the Arabs harness: “Ye-e-s!!!”
