1/5 WSJ Today:
Banks that helped fuel the #fracking boom begin to tighten revolving lines of credit.
Large #financial institutions are likely to decrease future loans to shale #oilandgas companies.
wsj.com/articles/banks…
Banks that helped fuel the #fracking boom begin to tighten revolving lines of credit.
Large #financial institutions are likely to decrease future loans to shale #oilandgas companies.
wsj.com/articles/banks…
2/5 Small and midsize #fracking companies may be forced out of business, and banks fear #oilandgas assets may not cover loans.
JPMorgan has $44 billion in oil and gas loans, Capital One has $3 billion.
JPMorgan has $44 billion in oil and gas loans, Capital One has $3 billion.
3/5 "Energy companies accounted for > 90% of defaults on corporate debt in the third quarter"
Over 30 oil-company bankruptcies in 2019, exceeding the number in 2018 and 2017.
E&P companies are carrying > $100 billion in debt
Over 30 oil-company bankruptcies in 2019, exceeding the number in 2018 and 2017.
E&P companies are carrying > $100 billion in debt
4/5 "Bank lending has slowed across the board in the country’s hottest drilling region, the #Permian basin in West #Texas and #NewMexico."
Without new cash infusions, #fracking companies may be unable to drill their undeveloped reserves
#KeepItInTheGround
Without new cash infusions, #fracking companies may be unable to drill their undeveloped reserves
#KeepItInTheGround
5/5 Naturally, #oilandgas companies are lobbying the Security and Exchange Commission to change the reserves reporting rules.
WSJ reporting wsj.com/articles/banks…
WSJ reporting wsj.com/articles/banks…
