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The Energy Rush - After the Boom in Natural Gas - NYTimes
Although the bankers made a lot of money from the deal making and a handful of energy companies made fortunes by exiting at the market's peak, most of the industry has been bloodied -- forced to sell assets, take huge write-offs and shift as many drill rigs as possible from gas exploration to oil, whose price has held up much better.

Rex W. Tillerson, the chief executive of Exxon Mobil, which spent $41 billion to buy XTO Energy, a giant natural gas company, in 2010, when gas prices were almost double what they are today, minced no words about the industry's plight during an appearance in New York this summer.

"We are all losing our shirts today," Mr. Tillerson said. "We're making no money. It's all in the red."

... Mr. Pickens was furious. "We are stupid to drill these wells," he said in a recent interview.



Schengen is toast!
by epochepoque on Sun Oct 21st, 2012 at 11:05:38 AM EST
[ Parent ]
Wow, a detailed analysis of the bubble that also names and shames some of the people most responsible.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Oct 21st, 2012 at 01:58:57 PM EST
[ Parent ]
More than a year ago they had this: Documents: Industry Privately Skeptical of Shale Gas, select industry documents on the controversy about the economic viability of shale gas. The accompanying article Insiders Sound an Alarm Amid a Natural Gas Rush more or less predicted the end of the first gold rush that is being experienced now.

Schengen is toast!
by epochepoque on Sun Oct 21st, 2012 at 03:22:46 PM EST
[ Parent ]
Yes, I remember a third article in the series featured in the Salon, and the documents came up again in a more recent discussion here.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Oct 21st, 2012 at 03:44:54 PM EST
[ Parent ]
At the same time, we're seeing a possibly concerted PR push in France: articles, subjects on TV news,... all showing how shale gas has ignited a real "industrial renaissance" in the USA with spanking new steel factories being build (did we mention jobs?). To no avail so far: the Hollande government has resisted any move on the existing ban.
by Bernard on Sun Oct 21st, 2012 at 03:54:43 PM EST
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What impressed me is how the US economy gets all the benefit (cheap energy, industrial resurgence) while handing a large share of the losses to international investors. Total, Shell etc. got saddled with multi-billion dollar losses. Not that I'm weeping for them... but it's a very real subsidy to the USA.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Mon Oct 22nd, 2012 at 11:21:24 AM EST
[ Parent ]

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