FV Shale Oil Next Victims: The Major Oil Companies

As the situation continues to deteriorate for the small to mid-sized shale operators, the next victim will be the major oil companies. If you think I may be exaggerating, the data and charts reveal that the major oil companies are already struggling to make money producing shale. And, when the overdue U.S. and global recession finally arrives, it will make a bad situation even worse for these oil majors whose history goes back more than 100 years.

I had planned to write an article on this subject matter, but I thought it would be better if I explained the information from these charts in a video presentation. Unfortunately, I believe the market has overestimated the ability of these major oil companies, ExxonMobil, Chevron, and ConocoPhillips, to be successful in their risky shale oil venture.

I say risky because I have been writing about the negative consequences of the Shale Industry since 2013. Furthermore, I knew that mining giant BHP Billiton’s stake in the U.S. Shale Industry was a big mistake in my July 2017 article, DOMINOES BEGIN TO FALL: BHP Chairman Says $20 Billion Shale Investment “MISTAKE.”

Then, a few months later, I posted this article, BHP Billiton: World’s Largest Mining Company To Exit Its $50 Billion Shale Oil Blunder. Now, some would say that BHP was a mining company, so they shouldn’t have moved into shale because they don’t focus on energy. While that makes logical sense, however, the Rapid Decline rate that plagues the shale industry would eventually destroy ANY company that tried to make a go of it, regardless if it was an energy company or not.

In my newest video, SHALE OIL NEXT VICTIM:  The Major Oil Companies, I provide some sobering charts showing how the financial situation has deteriorated for these three major oil companies once they started ramping up shale oil production:

In my research, I have focused the majority of my research on the Shale Oil Ponzi Scheme in the small to mid-sized companies. After several years of adding a massive amount of debt to continue business as usual, these shale companies are starting to get into serious trouble. If we look at the next chart, we can see the share price destruction in several of the shale companies after they released weak earnings a few weeks ago:

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