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Author Topic: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!  (Read 8705 times)

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AGelbert

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Another one bites the dust...twice!

HTF does this work?   ???     

RE

http://oilprice.com/Energy/Energy-General/US-Oil-Company-Sets-New-Record-with-Second-Bankruptcy-in-One-Year.html

U.S. Oil Company Sets New Record: Headed For Second Bankruptcy in One Year


For the second time in less than a year, oil services provider Hercules Offshore is heading for Chapter 11 bankruptcy protection by entering a restructuring support agreement (RSA). The Wall Street Journal writes that ''In a prepackaged bankruptcy, companies line up creditor support for their debt-payment plans before seeking chapter 11 protection, allowing them a speedier—and cheaper—trip through bankruptcy.

Last August, Hercules filed for Chapter 11 protection—the first time. At the time, the company showed US$13 billion in debt and just over US$546 million in assets, trying to restructure with a new US$450-million credit line.

Related: Clinton Chasing Votes With Fracking U-Turn

It resurfaced from this bankruptcy only in November, but the perpetual low oil price environment led to a slump in exploration investment and project cancellations.

Under the new Chapter 11 filing, Hercules is selling assets to pay off investors. The company has reportedly agreed to transfer the right to buy the Hercules Highlander jack-up rig to a subsidiary of Maersk Drilling for US$196 million.

The company said that its international units will not be included in the Chapter 11 filing, but will be part of the sale process.

In just the first four months of 2016 there were double the the number of energy company bankruptcies than in all of 2015. The total secured and unsecured defaults rose to $34 billion, double the $17 billion total for all of 2015. In 2015, 42 oil companies filed for bankruptcy.

In April this year, 27 North American oil and gas companies filed for bankruptcy—11 of them filing under Chapter 11, according to a Haynes and Boone report. Some 69 North American oil and gas producers have filed for various forces of bankruptcy.

More than one-third of public oil companies globally face bankruptcy, according to a new Deloitte report that paints a fairly gloomy picture of the U.S. shale patch as it struggles to survive under mountains of debt.


Chapter 11 is a corporate welfare queen bailout mechanism, ESPECIALLY if the corporation is a fossil fuel corporation.

WHY? Because the "restructuring" of the corporate finances are figured by trustees in Fossil Fuel FRIENDLY Bankruptcy courts (mostly in TEXAS) that, in virtually ALL of the fossil fuel Chapter 11 proceedings last year, PROJECTED $60 per barrel prices in 2016.

It didn't happen. HOWEVAH, the oil pigs got away with operating WITHOUT paying their main creditors based on projected earnings happy talk BULLSHIT that the bankruptcy courts swallowed hook, line and (bought and paid for) sinker.

When ANY other corporate enterprise, such as a retailer or, dare I say, a Renewable Energy product manufacturer  ;), goes into Chapter 11, they do not get this totally irresponsible, irrational and corrupt court protection and help.

We hear wailing and gnashing of teeth about Renewable Energy "scams and boondoggles" and all that "subsidy money waste" and "giant scam taxpayer loans" for Renewable Energy (statistically insignificant compared with fossil fuel subsidy and taxpayer loan swag), BUT NOT A PEEP about how fossil fuel corporations, that should have gone the way of the dodo bird, are still there.

The fact is that there is no way that ANY of these oil pigs can make money, even with their subsidy swag (along with the hidden pollution "externalized costs" subsidy swag) at less than around $60 a barrel. And THAT is why the Bankruptcy courts push the BULLSHIT that they will be "profitable again", because, uh, the price of crude will soon exceed $60 a barrel...

The HELL of it is, they may be right! 

But NOT because of supply and demand. NO SIR! It will be because of GAMED SPECULATION in the commodities trading of oil and gas futures, just like happened around 2003. ANY study of that period confirms the FACT that there was NO "lack of supply" to justify the price shocks.

At present the recent 80% rise in per barrel prices was ALL SMOKE AND MIRRORS.

The fact that a one billion barrel oil basin has just been discovered and announced ACCESSIBLE to current drilling technology off the Falklands SHOULD, in a sane world, spell the DOOM of any oil pig that requires $60 a barrel to survive.

But as long as we have bought and paid for bankruptcy courts in Texas, and the government backed gamed commodities trading CRAP, the WELFARE QUEEN babying of oil and gas corporations will continue.
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

 

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