Posted on 01/15/2016 5:00:25 AM PST by thackney
The epic-crash in oil prices has wiped out tens-of-thousands of jobs, caused dozens of bankruptcies and spooked global financial markets.
The fallout is already being felt in oil-rich states like Texas, Oklahoma and North Dakota, where home foreclosure rates are spiking and economic growth is slowing.
Now there are calls in at least some corners for the federal government to come to the rescue.
"It is time to send out an S.O.S., before it's too late," John Kilduff, founding partner of energy hedge fund Again Capital, wrote in a recent CNBC column. In the Kilduff dictionary, by the way, S.O.S. stands for "Save Our Shale" industry.
Kilduff fears Saudi Arabia's strategy of flooding the world with oil to put pressure on high-cost producers in the U.S. will kill America's shale business. "While we are laughing our way to the gasoline pump now, we are heading back down the road to dependence on OPEC and foreign oil," he wrote.
Greg Valliere, chief strategist at Horizon Investments, thinks an oil bailout could become the next big issue in Congress.
"If Washington can bail out big banks and the auto industry, why not a bailout for oil companies?" Valliere wrote in a client note on Thursday.
Sheila Hollis, an energy practice partner at the law firm Duane Morris, has also heard murmurings about an oil bailout. However, she doubts there's the political will in Washington for one.
"It makes sense in theory, but they'd need some pretty impenetrable body-armor to take this on," she said....
"The problem with most of these companies is they are overlevered. Adding federal money doesn't help the equation,"...
He also doubts whether fiercely independent producers in places like Texas would even accept federal aid.
"No one really wants to get in bed with the federal government," said Clark....
(Excerpt) Read more at money.cnn.com ...
Taxpayer money just sitting around doing nothing.../S
People are actually paid to write such dribble ?
No, no, no. The freedom to succeed carries with it the possibility of failure and h ardor king taxpayers should NEVER be required to bailout companies which fail. Or BANKSTERS who fail.
Nope, sell sell sell
Right.
We’re from the government and here to help you.
Here is $10B and a short list of 1001 things you must do if you accept the money.
Worse, people vote for politicians that believe such dribble.
When my business was paying $3.70 a gallon for the fuel we needed, and every waitress in North Dakota was driving a new F-350, no one offered me a bailout, nor did I ask for one.
Riiiiight - bail them out and ensure the Saudis and Russians of a lucrative inflated price - on our backs - again...
Yeah, investment managers long on oil calling for bailouts. Go figure.
Apologies, but I'm in a sour mood this morning, and I'm just on my first cup of coffee.
You mean companies that over extended, took out loans, and got screwed when their economy changed?
Haven’t we been through this a couple times already?
It is the oil workers who got laid off and small businesses that are hurt. Big oil is sitting on mounds of cash they squirreled away just waiting until oil goes back up. They are not hurt.
Just another opportunity for corruption on a massive scale.
amen.....
From what I've heard, shale producers have brought the cost of production down to roughly $40 a barrel. Veterans of that industry are used to the ups and downs, it's the speculators that thought they could make an easy buck.
Francisco d'Anconia would like to have a word with those folks...lol.
Thanks. We should use the proper words in describing idiots, less we be confused with them.
Cheers!
I don't agree they are sitting on mounds of cash. But they didn't dig deep into debt either.
Many with better financial control will be buying resources for dimes on the dollar (compared to what was paid 2~4 years ago).
Waitresses driving F350’s? I like manly women. Gotta move there.
Let me guess which hole you pulled that little gem from.
Actually, being laid off is like breathing....... natural
when the job is over, they hitch their trailers to their pickups and head to the next job or perhaps home for a while.
Don’t cry for the oil workers. They were paid fantastic wages for many many hours beyond 40 per week
the nature of the work is not like working in a cubicle or on a factory floor. the job is not perpetual
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