"Rex W. Tillerson, the chief executive of Exxon Mobil, which spent $41
billion to buy XTO Energy, a giant natural gas company, in 2010, when
gas prices were almost double what they are today, minced no words about
the industry’s plight during an appearance in New York this summer.
“We are all losing our shirts today,” Mr. Tillerson said. “We’re making no money. It’s all in the red.”
Like the recent credit bubble, the boom and bust in gas were driven in
large part by tens of billions of dollars in creative financing
engineered by investment banks like Goldman Sachs, Barclays and
Jefferies & Company.
After the financial crisis, the natural gas rush was one of the few
major profit centers for Wall Street deal makers, who found willing
takers among energy companies and foreign financial investors.
Big companies like Chesapeake and lesser-known outfits like Quicksilver Resources and Exco Resources were able to supercharge their growth with the global financing,"read more NY Times.
NY Times permalink
No comments:
Post a Comment