Will Wall Street Love Fracking as Oil Prices Fall?


Arnsdorf, Isaac [2014], “Will Wall Street Love Fracking as Oil Prices Fall?”, Business Week, New York, 30 de octubre, http://www.bloomberg.com/bw/articles/2014-10-30/will-wall-street-love-fr...

Business Week
Fecha de publicación: 
Jueves, Octubre 30, 2014
Idea principal: 

Seven years into the shale boom, the oil and gas industry relies more than ever on Wall Street financing, and Wall Street is even more exposed to an industry known for wild ups and downs. US onshore oil and gas producers sold new stock valued at $12.3 billion this year, the most in at least a decade, and issued an additional $29.2 billion in debt, according to Tudor Pickering Holt, an investment bank. Drillers, bankers, and analysts agree the shale industry couldn't have grown so big so fast without cheap and readily available capital. More than a decade ago, a technological breakthrough enabled companies to use hydraulic fracturing and horizontal drilling to extract fuels buried miles-deep in shale rocks. Wall Street was happy to supply the cash.