The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming

[marmar]

"There are too many ugly balance sheets," warns one energy industry analyst, adding simply that "the group is not positioned for this downturn." While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various 'statistics' about how the down-side of low oil prices is 'contained' and the huge colossal massive tax cut means 'everything is awesome' for America, the data - and now actions - do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come... ..........(more)

http://www.zerohedge.com/news/2015-01-07/first-shale-casualty-wbh-energy-files-bankruptcy-many-more-coming

[KoKo]

1. The "Happy Talk" on the business sites...

the "cover up," once again.

[upaloopa]

2. Good hope all the frackers go bankrupt.

They don't give a shit about what they do to the environment and ground water.
We can still invest in renewables even with low oil prices if we have the will. The reason should be the environment and climate change.

[Amishman]

3. won't happen

They are just going to use the cracks in the system to dump debt and restart operations with lower overhead.

[yallerdawg]

4. Commodities and futures markets...

like the price of a 'barrel of oil' are pure casino-type gambling. There is no security in this market, and financial institutions are well aware.

If they had cobbled together credit default swaps and derivatives based on oil speculation, as they did with sub-prime mortgages, and it were to have a devastating effect on our economy, you can bet banking and investment institutions would now have provided us the rope to hang them. They will be epically regulated. Their own best interest should have dissuaded them from doing this again.

On the plus side (if we haven't finished destroying the planet first), the oil is still in the ground, and eventually the Saudis will let prices go back up because of demand or profit interests.

The wildcat life rolls on!

[Brother Buzz]

5. So who's on the hook for the pending environmental lawsuits after these companies fold and blow away?

[Takket]

6. Like our justice system would have punished them anyway lol

[Brother Buzz]

7. When the judge opens his spigot and flames shoot out, his whole disposition may change

I'm just saying.