Over 170 shale companies have declared bankruptcy since 2015, affecting $100 billion in debt, including 8 bankruptcies already this year.
President of Mexico not amused: “In three years there was no investment in exploration, no investment in drilling wells, and they rated Pemex very highly. Now that there is investment, they downgrade Pemex.”
In its relentless pursuit of oil, the shale industry burns more and more gas into the air. This wasted gas exceeds the yearly demand of nations such as Colombia.
His lawyer suggests if the price is too high, he may be willing to take his friend, former president of Mexico, down with him.
“Once. Only this year. Later on, that’s their problem”: Finance Minister. It doesn’t help that $3.4 billion in fuel was stolen in 2018, including by insiders. Crackdown now underway.
US rating agencies pressure Pemex and the new Mexican government. But Pemex is too big to fail.
Here’s how a soon-to-be bankrupt company that’ll default on all its debts can still borrow $5.5 billion.
Just what the crude oil market needs.
California’s rate payers & taxpayers likely on the hook, as we know from PG&E’s first bankruptcy in 2001.
“It’s not easy to distribute and sell the pilfered contents of 600 pipelines each and every day.”