As
Fracking Enters A Bear Market, A Question Emerges: Is The Shale Boom Built On A
Sea Of Lies? - (www.zerohedge.com) "The
audience in the ballroom of the Hotel Derek included engineers for shale
drillers such as Marathon, Continental and Rice. Pamela Allen, a senior
reserves coordinator for Marathon, raised her hand and told Lee that she was
worried that using outsized forecasts in public presentations would run afoul
of the SEC and “come back to haunt us.” Singhania, the Marathon
spokeswoman, said she was unable to comment on Allen’s remarks without seeing a
transcript. “If a lot of people get burned -- and I think a lot of people
can and will be burned -- by these numbers in the investor presentations, there
may be a push by investors to get the SEC to do something about it,” Lee said
during the workshop."
Oil
price drop may hurt shale drilling profits - (www.cnbc.com) A
further slump in oil prices may dampen shale drilling's profitable run,
according to a report from Goldman
Sachs.
In the past four weeks, global oil prices plunged eight percent. And a barrel
in the U.S. is below $90, the first time in
two years.
On Thursday, shares of companies centered in North Dakota's Bakken Shale
dropped more than 5 percent. If prices drop any further, the Wall Street Journal reports, drilling activity would slow
down drastically. The key issue lies in the overabundance of oil, with sluggish
global demand to match it. Texas, Colorado and North Dakota shale-drilling has
increased U.S. production by nearly three million barrels a day since 2011.
Draghi
Policies Blunted in Berlin as German Protests Grow - (www.bloomberg.com) Mario Draghi’s policy tools are being blunted in Berlin. The
European Central Bank president has stopped short of large-scale sovereign-bond
purchases as efforts to mollify Germany’s political elite do little to silence
criticism of his ever-more expansionary measures. Support for anti-euro groups
such as Alternative for Germany has risen and the ECB’s latest plan to buy
assets sparked an outcry within all major parties. “German public opinion
matters an awful lot,” said Anatoli Annenkov, senior economist at Societe Generale SA in
London. “Draghi wants the ECB to be a central bank like any other, one that can
go and buy government debt. But he’s perfectly aware of Germany’s opposition,
and the storm now is a clear signal that it’ll be much more difficult.”
Portugal’s
ESFG Files for Bankruptcy on Failed Protection - (www.bloomberg.com) Espirito
Santo Financial Group SA, part of a Portuguese family empire that unraveled in
the wake of soured loans, was forced to file for bankruptcy after a court
rejected a request for creditor protection. The board’s decision follows a
ruling by a Luxembourg court on Oct. 3, rejecting the July request, ESFG said
in a regulatory filing today. While Banco Espirito Santo SA, formerly partly
owned by ESFG, received a 4.9 billion-euro ($6.3 billion) rescue by the Bank of Portugal in August, the court ruled a
restructuring of ESFG was “impossible.” ESFG was forced to seek creditor
protection, joining parent companies Espirito Santo International SA and
Rioforte Investments SA, after failing to meet debt obligations following the
disclosure of losses on loans across the holding company. Banco Espirito Santo,
once Portugal’s biggest bank by market value, was bailed out on Aug. 3, with
the central bank moving deposit-taking operations and most assets to a new
company called Novo Banco SA.
Russia
Spends $1.5 Billion in One Day as Ruble Defense Quickens - (www.bloomberg.com) Russia’s central bank stepped up the pace of currency
interventions as sanctions and an oil-price slump spur bets policy makers will
raise interest rates.
The central bank sold $1.5 billion on Oct. 8, according to data on its website
today. That’s almost as much as the previous three days combined and the most
for a single day since the $4.41 billion intervention that preceded the Crimea
referendum to join Russia in March. Wagers for interest-rate increases soared
to a six-year high as Brent oil’s slide to four-year lows sends the ruble
falling further past 40 per dollar.
Barcelona
Stirs as Spain Warns of Separatist Tinderbox - (www.bloomberg.com)
Spanish Hospital Monitors 13 People for Risk of Ebola - (www.bloomberg.com)
Spanish Hospital Monitors 13 People for Risk of Ebola - (www.bloomberg.com)
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