U.S. shale companies facing a money-losing reality after oil price collapse

first_img FacebookTwitterLinkedInEmailPrint分享Bloomberg:America’s shale producers already had a profitability problem. It just got a lot worse.At a stroke, Saudi Arabia and Russia and their battle for market share have made almost all U.S. shale drilling unprofitable. Only five companies in two areas of the country have breakeven costs lower than the current oil price, according to data compiled by Rystad Energy, an Oslo-based consultancy.Wells drilled by Exxon Mobil Corp., Occidental Petroleum Corp. Chevron Corp. and Crownquest Operating LLC in the Permian Basin, which stretches across West Texas and southeastern New Mexico, can turn profits at $31 a barrel, Rystad’s data show. Occidental’s wells in the DJ Basin of Colorado are also in the money at that price, which is where oil settled Monday.But that’s not the case for the rest of the shale industry — more than 100 operators in a dozen fields. For them, drilling new wells will almost certainly mean going into the red.Shale projects are heralded for their ability to be quickly ramped up and down. But because output from these wells declines much faster than from their old-school, conventional cousins, companies have to drill more of them just to keep output flat. That has meant sluggish investor returns, one of the main reasons oil and gas represents less than 4% of the S&P 500 Index.At this point, “companies should not be burning capital to be keeping the production base at an unsustainable level,” said Tom Loughrey, a former hedge fund manager who started his own shale-data firm, Friezo Loughrey Oil Well Partners LLC. “This is swing production — and that means you’re going to have to swing down.”“Even the best operators will have to reduce activity,” said Artem Abramov, head of shale research at Rystad. “It’s not only about commerciality of the wells. It’s a lot about corporate cash flow balances. It’s almost impossible to be fully cash flow neutral this year with this price decline.”[Rachel Adams-Heard and Kevin Crowley]More: Shale’s new reality: Almost all wells drilled now lose money U.S. shale companies facing a money-losing reality after oil price collapselast_img read more

Online casino on “strong footing” to absorb live sports return

first_imgShare Soft2Bet continues new market drive with Irokobet launch August 26, 2020 Share Related Articles Submit Better Collective cautious on quick recovery as COVID drags growth momentum August 25, 2020 StumbleUpon Alberto Alfieri: Leading the way for Gamingtec’s B2C growth August 25, 2020 SBC News caught up with Soft2Bet CEO Boris Chaikin to discuss whether the recent spike in online casino activity during the break from live sports events could be sustained as Europe’s biggest football leagues kick back into action.Chaikin was asked if the traffic for online casino games – beneficiaries of the COVID-19 pandemic (at least relative to sports betting) – would drop significantly with a more ‘normal’ availability of sports to bet on, rubber stamped by this week’s Premier League resumption. “Yes and no,” he replied. “Casino traffic will be lower but not because of the return of live sports. When people resume their usual lives, they will no longer have the leisure time available during lockdown to enjoy online casino entertainment. “Budgets could be constrained too, due to the anticipated economic consequences of the pandemic and job pause experienced by a significant proportion of the population. “That is not to say that we will see a major drop off in volumes, however; since customer acquisition and engagement over the last few weeks has put us on a strong footing.”Chaikin noted that the Bundesliga, the first of the major football leagues to return, had brought about a significant increase in traffic for sports betting, but not instigated a significant decline in online casino traffic.He admitted that the Premier League is likely to tilt the global casino-sports betting balance to a greater extent than the Bundesliga, but added that he hoped that sports bettors would “continue to enjoy the products they were introduced to during lockdown alongside betting on sports, albeit less frequently, than abandon them entirely”.Chaikin also reiterated that the COVID-19 crisis has magnified the need for gambling operators – and white label providers such as Soft2Bet – to diversify their offering in terms of non-mainstream content, casino games and traditional sports betting favourites.Referring to COVID-19 as a ‘black swan’ that no one expected, he explained: “Navigating the crisis has taught us some valuable lessons that will help shape how the industry moves on, not least the importance of product diversification and versatility.”He added that while online casino as a sector may appear “less vulnerable” than its sports betting counterpart, these ‘unprecedented times’ – combined with regulatory rumblings in the background – dictate that one vertical is never necessarily more stable than another.Gazing into his crystal ball for igaming’s short to mid-term future, he predicted: “The appearance of new solutions, not only for cross-selling but in attracting new players to igaming, will continue to develop in the coming months and drive strategies going forward.”last_img read more

LeBron James vs. Time: Precedent suggests Lakers star could see a decline

first_img Trail Blazers, Grizzlies advance to NBA play-in game; Suns, Spurs see playoff dreams dashed AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREUCLA alum Kenny Clark signs four-year contract extension with PackersGeneral Manager Rob Pelinka spoke glowingly about James’ offseason workouts, squeezed in during the morning twilight before filming “Space Jam 2”. Around the practice facility, Pelinka suggested, James set the standard for work ethic.“Guys were saying, ‘I don’t know if I can keep up with him because he was working so hard,’” he said. “He just really seems locked in and serious. That’s the aura we’ve gotten so far being around him.”There’s a fine line between being a statistical anomaly and eventually falling prey to age like everyone else. How long can James keep it up?Only four other players in NBA history have ever averaged at least 27 points during their age-34 season, luminaries Michael Jordan, Kobe Bryant, Karl Malone and Bernard King. None of them also averaged more than eight assists, which James did while leading the Lakers in assists last year.History doesn’t have many examples of elite scorers and playmakers whose primes last into their mid-30s. Only three players – Lenny Wilkens, Jerry West and Larry Bird – have ever averaged at least 20 points and 6 assists into their age-35 season. Only Wilkens was able to suit up for more than 45 games. James’ groin tear last season, which cost him 18 games, was the most serious injury he’s ever suffered in his career, and the first true crack in his aura of durability. James himself noted that it was the worst injury he had suffered since high school – some 18 years before.Even before that, James had gotten used to the idea that he couldn’t take a day off from his recovery.“When you’re 21, 22 I can actually play the game without tying my shoes, without getting taped, without icing after a game, and play a back to back and feel 100 percent,” he said last season. “(Getting older) you learn what your body can endure, how much physical toll your body can take, and how to counter that to where you can be at the top of your craft.”Close observers can note that James’ game has changed in subtle ways. He was a less efficient rim finisher last year, for example, dropping from 75 percent to 71 percent – a small change, but the trend could continue if James loses more of his signature explosiveness. He’s helped compensate by attempting more 3-point shots: His attempts from long range have increased for three consecutive seasons, accounting for 26 percent of his shots last season (during his third MVP season in 2011-12, only 11 percent of his shot attempts were 3-pointers).James’ best stopgap from age-related regression is his vision and instincts in the playmaking game. Armed with an elite big man in Anthony Davis, there’s good reason to think James’ assist numbers will stay afloat: There have been 11 seasons when players 35 and older have maintained at least 8 assists per game, including Lakers assistant coach Jason Kidd who maintained that level through 37. As one of the top 10 leaders in NBA career assists, James is well-positioned to join that group, which also includes John Stockton, Steve Nash and Wilkens.Related Articles Trail Blazers beat Grizzlies in play-in, earn first-round series with the Lakers How athletes protesting the national anthem has evolved over 17 years The Lakers have been reticent to share how load management, a strategy of resting stars in carefully selected games, might apply to James. Coach Frank Vogel said he will look into it on a case-by-case basis. But given that so much of the Lakers’ hopes rest on James, it’s hard to see the Lakers not at least seriously considering resting him on occasion to keep him fresh for a potential playoff run.James said the long summer allowed him to “reset” and “refresh” his body before the season, something he hasn’t had a chance to do for a long time – for the previous eight seasons, he didn’t stop playing until mid-June, not counting Olympic commitments. Case in point, counting the playoffs, James has played 7,760 more minutes than 42-year-old Vince Carter:Both team management and his teammates trust James to take care of his body as best he can. Davis said he’s been impressed by James’ attentiveness to diet, workouts and finding cutting-edge technology to still bring his best after so many years.“He does the right things to take care of his body,” he said. “You can see why he’s still playing at year 17 looking like it’s his eighth year in the league.”center_img Lakers, Clippers schedules set for first round of NBA playoffs Lakers practice early hoping to answer all questions In his second Lakers campaign, LeBron James doesn’t lack for competition.He’s staring down one of the most competitive Western Conference fields in league history, rife with old foes – not the least of which happens to play in his own building at Staples Center.But the greatest adversary James is facing is the one that he’ll never defeat: time. The only question for James – and for a Lakers franchise hoping his championship window is still open – is how long he can stave off the inevitable.It’s a question that is a delicate one around the Lakers. The suggestion that James could lose his touch isn’t readily welcomed, and given that he’s coming off of season averages of 27 points, 8 assists and 8 rebounds, there’s not much obvious statistical evidence that the decline has started. Newsroom GuidelinesNews TipsContact UsReport an Errorlast_img read more