• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 4 hours Saudi Aramco launches largest shale gas development outside U.S.
  • 9 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 15 hours Peak Shale Will Send Oil Prices Sky High
  • 11 hours CDC covid19 coverup?
  • 8 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 13 hours What Is Holding Back Geothermal Heating and Cooling?
  • 1 day Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 3 hours Huawei ≠ iPhones? UAE Used Cyber Super-Weapon To Spy On iPhones Of Foes
Alt Text

The Rise Of Resource Nationalism

The world is becoming increasingly…

Alt Text

Two Innovations That Could Make CO2 Fuel A Reality

Two recent innovations could make…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Real Estate Tycoon Buys Up Oil Assets At Rock Bottom Prices

Sam Zell, the real estate mogul, has acquired oil assets across the United States at ‘fire-sale’ prices, as U.S. drillers sell assets to raise cash which is scarce in the oil patch these days, the billionaire told Bloomberg TV in an interview on Thursday.

Zell, founder and chairman of Equity Group Investments, has bought assets of oil companies in Texas, Colorado, and California at advantageous prices because firms are increasingly looking to have cash buffers, anticipating potential further slowdown in drilling and cash available to the oil sector.  

“The amount of capital available in the oil patch is disappearing,” Zell told Bloomberg, comparing the U.S. oil industry now with the early-1990s real estate sector when no one had cash and there were empty real estates everywhere.

After years of frustration with the lack of meaningful returns from shale firms and amid persistently low oil and gas prices, investors have turned their backs on energy stocks. Banks have too, restricting lending to shale firms who have grown production so far mostly by taking on more debt.

U.S. shale drillers are not optimistic about the near future, either, admitting that Wall Street has turned off the tap on funding and that low oil and gas prices will continue to depress margins and earnings.

In one of the latest signs of distress in the U.S. shale patch, Chesapeake Energy warned last week that its ability to comply with the covenants under its revolving credit facilities and other indebtedness could impact its ability to continue as a going concern.

The company, which helped propel the shale gas revolution in the late 2000s, said it has released its operated rigs and completion crews in the Haynesville Shale for the rest of the year. Chesapeake is also slashing its 2020 capital expenditure forecast by around 30 percent, and expects to reduce 2020 production and general and administrative expenses by some 10 percent.

Reports emerged yesterday that leading Haynesville basin producer Comstock Resources is in discussions to buy the Haynesville assets of Chesapeake in Louisiana.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News