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Oil price collapse claims WA's Red Fork Energy, shale gas company in receivership (1st Major Victim)
ABC News ^ | 12-12-2014 | Kathryn Diss

Posted on 12/12/2014 9:10:50 PM PST by tcrlaf

The collapse of the oil price has snared its first West Australian victim with Red Fork Energy losing the support of its major lender.

The Perth-based company drills shale rock onshore in the United States, producing oil and gas.

But it is completely exposed to the US shale industry, which analysts say has become unviable at current oil prices.

The oil price has tumbled 40 per cent in recent months, dragging down the value and margins of oil and gas producers.

Red Fork's major lender, Guggenheim Corporate Funding, called in the receivers this week

(Excerpt) Read more at abc.net.au ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections
KEYWORDS: fracking; oil; price
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The article notes that not only are the exploration companies looking at trouble, but a number a major banks could be looking at huge losses, as well. (JP Morgan,Citi, Goldman)
1 posted on 12/12/2014 9:10:51 PM PST by tcrlaf
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To: tcrlaf

Need to increase the demand somehow...

I know!

Print more money!


2 posted on 12/12/2014 9:11:45 PM PST by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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To: thackney

Ping.


3 posted on 12/12/2014 9:12:03 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: tcrlaf

And so hussein’s destruction of America continues.


4 posted on 12/12/2014 9:13:02 PM PST by re_nortex (DP - that's what I like about Texas)
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To: tcrlaf

Low oil prices are the Will of Allah.....


5 posted on 12/12/2014 9:13:41 PM PST by Paladin2
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To: tcrlaf

You play, sometimes you lose.


6 posted on 12/12/2014 9:14:02 PM PST by doc1019
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To: tcrlaf

This is by designed to eliminate the fracking companies. The drip, drip, drip, begins here and now moves to the next one.


7 posted on 12/12/2014 9:16:34 PM PST by kempster
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To: tcrlaf

That was quick. Something tells me this company was badly managed.


8 posted on 12/12/2014 9:20:57 PM PST by Vince Ferrer
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To: tcrlaf

al-Standard oil, 2014.


9 posted on 12/12/2014 9:22:35 PM PST by tumblindice (America's founding fathers: all armed conservatives.)
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To: kempster

They aren’t killing it, it’s a threat that will always exist to keep OPEC in check. As soon as there is a buck to be made, people will be lining up to restart production.


10 posted on 12/12/2014 9:25:27 PM PST by FunkyZero (... I've got a Grand Piano to prop up my mortal remains)
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To: Vince Ferrer

No; the market conditions changed and they lost their bet.

Going to be lots more to follow.


11 posted on 12/12/2014 9:30:53 PM PST by SeaHawkFan
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To: tcrlaf

Wow!

“”So, now the price of oil is down where it is, the shale gas producers might find they are unable to service their debt, so there would be a lot of non-performing loans,” Mr Strachan said.

“By some reports, $15 trillion of funds has been lent to this business, so it may well be in fact that it’s not the oil companies that are in trouble, it’s the banks.

“Over the next six months, I’ll be watching very closely to see how these banks react to their debt, if they come back to the company and say we want our money back, the company says we’ve got no way of repaying it, the bank will end up owning these oil and gas assets.”


12 posted on 12/12/2014 9:34:45 PM PST by Lurkina.n.Learnin (It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care)
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To: SeaHawkFan

Betting a company is not good management. Contingency planning, risk assessment, hedging is good management.


13 posted on 12/12/2014 9:37:24 PM PST by Vince Ferrer
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To: SeaHawkFan

I have no doubts that hussein is behind this since his goal is to decimate the domestic energy industry. He and his corrupt regime have Texas and North Dakota in the crosshairs, seeking to destroy the economy of Conservative regions. His initial plans to wreak havoc on Texas failed with his importing of Ebola and so now he’s using his next attack vector. His evil is utterly boundless.


14 posted on 12/12/2014 9:44:02 PM PST by re_nortex (DP - that's what I like about Texas)
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To: tcrlaf

So, where are all the articles and man-on-the-street interviews with morons blaming big oil for fixing prices?


15 posted on 12/12/2014 9:53:55 PM PST by Pining_4_TX (All those who were appointed to eternal life believed. Acts 13:48)
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To: Pining_4_TX
So, where are all the articles and man-on-the-street interviews with morons blaming big oil for fixing prices?

Excellent point there, FRiend! In terms of semantics, notice how the commies use derisive terms such "Big Oil", "Big Tobacco" and "Big Pharma" to attack corporations thriving in the free enterprise system. Yet they never use phrasing such as "Big Labor" or "Big Government". The commies must be crushed! And Ted Cruz is the man to do it! He'll also get oil prices back to where they ought to be. This market manipulation by hussein and his muzzie comrades is poised to kill the Texas economy...just as he and his OPEC masters have schemed.

16 posted on 12/12/2014 10:00:32 PM PST by re_nortex (DP - that's what I like about Texas)
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To: tcrlaf

This sucks. Gas prices are low and I’m retired and can’t afford to go anywhere.


17 posted on 12/12/2014 10:04:16 PM PST by VerySadAmerican (My love affair with an abuser is over. Support a third party.)
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To: FunkyZero

They aren’t killing it, it’s a threat that will always exist to keep OPEC in check. As soon as there is a buck to be made, people will be lining up to restart production.


I cannot imagine that it will be that easy.


18 posted on 12/12/2014 10:06:37 PM PST by boycott
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To: tcrlaf
The shale oil remains to be fracked now or to be fracked later.

If they stop fracking now, then supplies will go down and prices will go up and fracking will start up...again.

The Saudis can't make the oil disappear.

Shrug.

19 posted on 12/12/2014 10:07:14 PM PST by FreeReign
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To: Lurkina.n.Learnin
How the h3ll can a single company secure $15 Trillion? the entire US economy is what : $16-$17 Trillion a year?
20 posted on 12/12/2014 10:10:38 PM PST by txnativegop (Tired of liberals, even a few in my own family.)
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