As the situation continues to deteriorate for the small to mid-sized shale operators, the next victim will be the major oil companies…
As the situation continues to deteriorate for the small to mid-sized shale operators, the next victim will be the major oil companies. If you think I may be exaggerating, the data and charts reveal that the major oil companies are already struggling to make money producing shale. And, when the overdue U.S. and global recession finally arrives, it will make a bad situation even worse for these oil majors whose history goes back more than 100 years.
I had planned to write an article on this subject matter, but I thought it would be better if I explained the information from these charts in a video presentation. Unfortunately, I believe the market has overestimated the ability of these major oil companies, ExxonMobil, Chevron, and ConocoPhillips, to be successful in their risky shale oil venture.
I say risky because I have been writing about the negative consequences of the Shale Industry since 2013. Furthermore, I knew that mining giant BHP Billiton’s stake in the U.S. Shale Industry was a big mistake in my July 2017 article, DOMINOES BEGIN TO FALL: BHP Chairman Says $20 Billion Shale Investment “MISTAKE.”
Then, a few months later, I posted this article, BHP Billiton: World’s Largest Mining Company To Exit Its $50 Billion Shale Oil Blunder. Now, some would say that BHP was a mining company, so they shouldn’t have moved into shale because they don’t focus on energy. While that makes logical sense, however, the Rapid Decline rate that plagues the shale industry would eventually destroy ANY company that tried to make a go of it, regardless if it was an energy company or not.
In my newest video, SHALE OIL NEXT VICTIM: The Major Oil Companies, I provide some sobering charts showing how the financial situation has deteriorated for these three major oil companies once they started ramping up shale oil production:
While this chart is a few days old, the results are still the same. Whiting Petroleum suffered a near 40% collapse in its stock price when it released poor Q2 2019 earnings. I believe we are just beginning of the collapse of the U.S. Shale Industry as the majority of these small to mid-sized operators head into PENNY STOCK HEAVEN.
If you want to see how ExxonMobil, Chevron, and ConocoPhillips financial situation has deteriorated since they have moved into shale, you need to watch the charts explained in the video above.
IMPORTANT NOTE: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.
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