Gosh, Why Did This Frackinvestor Lose $2.6 Billion?

JiggsCasey

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Jan 12, 2010
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Sumitomo, only Japan's 4th largest trader, just got butt fracked in Texas ... losing 12% of its stock value in a single day and seeing its credit rating go from delicious to negative after $1.5B is U.S. tight oil fail. ... This all happened in that Panacea that is supposedly the Permian Basin.

Sumitomo to Probe $1.8 Billion in Shale And Coal Losses

Sumitomo’s board plans to sell the northern part of the oil project it shares with Devon Energy, saying it’s “difficult to extract the oil and gas efficiently.”
Ouch ... that's gotta hurt. Please do continue, Bloomberg:

Net income is forecast to total 10 billion yen ($91 million) in the year ending March 31, down sharply from the company’s May forecast of 250 billion yen, Sumitomo said in a statement. The bulk of the change comes from a 170 billion yen write down on the value of the shale oil development in the Permian Basin in Texas...
Ah well, that's only 96% off from what you were fooled into believing was possible. Sorta like the Monterrey (Calif.) reserves write down, which was ... gosh... 96%.

This comes in the wake of Japan's third largest trader -- Itochu Corporation -- writing off 80% of an $80 million U.S. fracking investment. Then of course, there's oil major Shell, which took a $2 billion hit last summer in the great fraud that is tight oil investment. They're bailing too.

I wonder if our resident snake oi, ... ermmm... I mean tight oil salesman can come set us straight on why foreign investment is suddenly making a sharp U-Turn on that promise of U.S. energy independence of late? Surely these are just anomalies.

Queue it up:

"Something something zealot... something somethings words... something something religion.... words words halfwit ... something something ... ride a bike... something words something, ... straw man, straw man... church dogma... halfwit something something words... I'm rich, why aren't you?"
 
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mmmm, yeah... fracking...

twice as expensive to set up... 4-5x as expensive to maintain... 10-20x the production decline rates.

awwwwww ... independence any day now.
 
Shell Oil: US Fracking “Revolution” A Money Loser
Shell Oil US Fracking Revolution A Money Loser Wolf Street

In January, Shell’s new boss, Ben van Beurden warned things weren’t going as he expected. Fourth quarter upstream earnings, he said, were hit by high exploration costs and lower production volumes. Its upstream business in the Americas, Shell warned, was expected to incur a substantial loss this year.

His disappointment comes as the U.S. Energy Information Administration said strong growth was expected from the Bakken, Eagle Ford and Permian basins in the country. By the end of this year, EIA said crude oil production should reach 8.4 million bpd and hit 9.2 million bpd in 2015 thanks in part to shale.

Shell, however, said it may have to unload its stake in the Eagle Ford shale play in Texas to keep its corporate checkbook balanced.

The tendency would be to blame Shell for its poor management team. While Marvin Odum, the boss of Shell’s U.S. division, wasn’t discussing how the cut backs would hurtbusiness at his Houston office, he still has a job, however.
 
Itochu Writes Down Samson Investment as U.S. Shale Bet Sours
Itochu Writes Down Samson Investment as U.S. Shale Bet Sours - Bloomberg

Itochu Corp. (8001), Japan’s third-largest trading house, said it booked another writedown on its investment in oil and gas producer Samson Investment Co., as its bet on the U.S. shale boom sours.

The latest impairment of 29 billion yen ($279 million) follows charges of about 33 billion yen reported by the Tokyo-based company last year. Itochu has now written down most of the 78 billion yen, worth $1.04 billion at the time, it paid in 2011 for a 25 percent stake in family-owned Samson.
 
Sumitomo, only Japan's 4th largest trader, just got butt fracked in Texas ... losing 12% of its stock value in a single day and seeing its credit rating go from delicious to negative after $1.5B is U.S. tight oil fail. ... This all happened in that Panacea that is supposedly the Permian Basin.

What does a parrot mean when he says, "panacea"?

JiggsCasey said:
Ah well, that's only 96% off from what you were fooled into believing was possible. Sorta like the Monterrey (Calif.) reserves write down, which was ... gosh... 96%.

It wasn't Monterey RESERVES that were wrote down, you half witted oil ignorant fool. Learn the difference between reserves or resources or continue to represent your religion in the same ignorant way you have been.
 
mmmm, yeah... fracking...

twice as expensive to set up... 4-5x as expensive to maintain... 10-20x the production decline rates.

awwwwww ... independence any day now.

150K-200K per stage, certainly no maintenance costs afterwards other than a standard coiled tubing unit clean out which is necessary after one stage or 20, first year decline rates in a conventional field like Prudhoe run 15-40%, the Barnett runs perhaps 35-50%, so your math sucks as usual.

Can you please parrot something, ANYTHING, in a factually correct manner, if that is all you are capable of?
 
Shell Oil: US Fracking “Revolution” A Money Loser
Shell Oil US Fracking Revolution A Money Loser Wolf Street

His disappointment comes as the U.S. Energy Information Administration said strong growth was expected from the Bakken, Eagle Ford and Permian basins in the country. By the end of this year, EIA said crude oil production should reach 8.4 million bpd and hit 9.2 million bpd in 2015 thanks in part to shale

So the experts are saying that we are going to have ANOTHER peak in US oil production? Goodness, what will the parrots do when they can't talk about Hubbert's call for the US being correct, Hubbert would have lost all credibility by this point.

Amazing thing, reality, and how it doesn't care what a particular religion, or particular parrot, ignorantly fell for all those years ago. More resource economics for the masses, less ignorant fools and parrots.
 
It wasn't Monterey RESERVES that were wrote down, you half witted oil ignorant fool. Learn the difference between reserves or resources or continue to represent your religion in the same ignorant way you have been.

LOL... as predicted.

I know the difference. But so typical of you to deflect from the crux of the matter.

In any event, the Reuters story states recoverable reserves. Write them a letter. ... Same with CNBC:

How does a country cope when nearly 13 billion barrels of oil reserves vanish overnight?

A soon to be released government forecast says that California's Monterey Shale deposit will yield only 4 percent of what was originally hoped. The downgrade immediately raised questions about the sustainability of the still nascent U.S. energy boom, which has sent domestic oil and gas production to its highest level in nearly 40 years.

No one denies the crap is down there, and my point (over and over again) is that it's not economically recoverable, and won't be. It will stay in the ground, and all the empty promise that comes with it. That's a remarkable 2/3 of all the fraud you and your friends sold the investing public on, and it's not gonna happen. I suspect you and your people knew this all along (dishonest), or were so overcome with arrogant hubris, you thought the price per barrel would always be there (dumb). Awwww.... Yeah, see, consumer-end price kinda matters. There's a ceiling on price, unless you wanna guarantee recession... This is an economic truth, as Kopitz presented, that you continue to lie about (or too dumb to understand).
 
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150K-200K per stage, certainly no maintenance costs afterwards other than a standard coiled tubing unit clean out which is necessary after one stage or 20, first year decline rates in a conventional field like Prudhoe run 15-40%, the Barnett runs perhaps 35-50%, so your math sucks as usual.

Can you please parrot something, ANYTHING, in a factually correct manner, if that is all you are capable of?

But we're not really talking about conventional fields at Prudhoe, are we you fraud? As for Barnett, as usual, no link supporting your latest claims attempting to spin decline rates (which are still gawd awful, even if your numbers are sacred)...

Further, there's a bit more cost associated with the process than that, isn't there you perpetual liar? Land lease, ever more infrastructure (to succeed on promised growth), management costs, royalties, insurance and legal fees (in the face of guaranteed lawsuits). You don't mention those costs, because they don't fit your false narrative.

Any way you slice it, it's a doomed industry with maybe 3-5 investment years left. Then you frauds will be stripped bare, and have to admit that global production -- minus this temporary tight oil/gas blip in the U.S. -- is down. Just like they always said it would be.

You are in the business of inflating a ponzi scheme. The math simply isn't there that it can sustain itself with oil prices this "low." Meanwhile, for the end consumer, it's not historically low at all, ... as even at $91, it's continuing to kill the global economy. What a fix. Your heroes need oil closer to $150 to make a buck. Meanwhile, the ailing world -- utterly dependent on the illusion of growth -- can't really deal with a price even half that.

Ah well. Maybe your people can make up a new oil frontier that will never be economically viable. Say, on the dark side of the moon!! "Yeah, that's it!!!! Give us your money, and we promise a return on investment!!!"...

LOL... Fail.

Peak is already here. Always was. The deepest affects are just delayed a decade by unsustainable cash injection and easy credit.
 
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It wasn't Monterey RESERVES that were wrote down, you half witted oil ignorant fool. Learn the difference between reserves or resources or continue to represent your religion in the same ignorant way you have been.

I know the difference.

No. You don't. You never have, and you probably never will.

JiggsCasey said:
In any event, the Reuters story states recoverable reserves. Write them a letter. ... Same with CNBC:

I didn't say the average reporter was any more intelligent that you in this regard. I have discussed this with reporters before, told them to their face the difference, and told them to stop getting it wrong. In the following article they published based on that interview, they got it wrong.

Unlike you, however, they pretend to try to learn. You appear to be just plain old happy in your ignorance.


Jiggscasey said:
Yeah, see, consumer-end price kinda matters. There's a ceiling on price, unless you wanna guarantee recession... This is an economic truth, as Kopitz presented, that you continue to lie about (or too dumb to understand).​


You still don't know why Kopitz left his old gig do you? And yes, price matters. Good thing it has come down since TOD declared peak oil in 2008 when price hit $147. What is it today? Quite a bit less.

You are welcome.​
 
But we're not really talking about conventional fields at Prudhoe, are we you fraud?

I talk about conventional fields all the time. Do you realize how many hundreds of billions of barrels are available in existing conventional fields around the world? Probably not, I mean, the scientists know, but your religion doesn't let you in on those results, do they?

USGS Release USGS Releases Global Oil Gas Reserve Growth Estimates 6 18 2012 11 42 10 AM

JiggsCasey said:
As for Barnett, as usual, no link supporting your latest claims attempting to spin decline rates (which are still gawd awful, even if your numbers are sacred)...

Hey, can I help it if your church doesn't provide you subscriptions to BOTH DI and IHS? I recommend you hire some experts, get them the data, and then they can waste their time explaining things to you. And no, I'm not available to work for religious fanatics. Jesus, it would be like trying to explain relativity to a turtle with your betters.

JiggsCasey said:
Any way you slice it, it's a doomed industry with maybe 3-5 investment years left. Then you frauds will be stripped bare, and have to admit that global production -- minus this temporary tight oil/gas blip in the U.S. -- is down. Just like they always said it would be.

Heard that before, like when TOD was declaring global peak oil in 2008. And here we are...6 years later...soon to be 7..and the only thing that is finished is TOD. Happens when you play analyst without any experience or inclination for it. What does your church have to say on the topic of imploded websites toeing the church line, to their early demise?

JiggsCasey said:
Your heroes need oil closer to $150 to make a buck.

Actually, at $150/bbl, the oil industry makes more than a few. And at $80, they are still doing fine. Get that DI or IHS data, and add up all the newly completed wells for yourself. Oh....sorry...I would have to teach you how to ADD before you could do that.

JiggsCasey said:
Peak is already here. Always was. The deepest affects are just delayed a decade by unsustainable cash injection and easy credit.

Oh..now the peak oil declared by Colin Campbell in 1989 was delayed, then those peaks in the 90's were delayed, and now all the claimed peaks of the 2000's have been laid to rest, and so now that peak is just off there in the future a few years...again?

Gee...what a surprise...Jiggys' gang running from the can do experience and gumption of the oil industry...AGAIN.
 
lol... you're vacillating between outright lying and deflection again. ... creating straw men and blatant omission of facts have always been your main forms of ordinance...

Let's try something different and see if you can spin exactly why foreign investment in your pet industry is drying up? This should be good.
 
lol... you're vacillating between outright lying and deflection again. ... creating straw men and blatant omission of facts have always been your main forms of ordinance...

Your inability to answer even basic questions about your references reveal you. I have asked before that you bring back someone from your church with the ability to think and fight back, and instead, you keep bringing up the same tired arguments that didn't work when your church declared peak oil in 1989...or 2000...or 2005...or 2006....or 2008...or whatever the current chicken little claim is.

Jiggsy want a cracker?

king-parrot_593_600x450.jpg
 

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