The bankruptcy wave hitting U.S. fossil fuel companies is evoking comparisons with the dot-com burst more than a decade ago, as the number of oil and gas companies filing for creditor protection hit 59 this week, Reuters reports—a number that's "closing in on the staggering 68 filings seen during the depths of the telecom bust of 2002 and 2003."
Unfortunately, I can't share the writer's optimism that this offers a glimpse of an oil free future. Small to midsize players that overextended themselves are going belly up. That just leaves the way for the bigger players to scoop up assets at discounts. It is good news for the Exxons of the world who can increase their market share and control production output for maximum profits.
This news is climate neutral.
whoopie... more monopoly please - and while you're at it could you fill up this even larger SUV? The emissions controls have been fixed for at least 5 more years. Oh, and before I forget... be sure and cast your vote for those yummy goodoleboys back in warshington and dress up for the victory party!
All those golden...err...platinum parachutes are going to come in handy for the oil and coal execs. Of course, taking the cowards' way out is to be expected...Chapter 11 wherein the companies can reinvent themselves after dumping their debt. The writing was on the wall way back in the 1970's when the environmentalists and scientists issued their warning about the future of fossil fuels but the sound of money drowned them out when the car companies helped out the oil barons by building SUV's like the Ford Explorer and then the Expedition with others following suit. And the DoD will keep BP afloat for millennia with their cushy contract to provide the military with oil products ad infinitum.
The resultant suffering will be borne by those least able to carry it.
But if you go to the MSM website, they link an article from The Street entitled "7 unlikely Dow winners -- should you buy?" and tout what a good investment Exxon-Mobil and Chevron are.
There is a sucker born every minute...
I doubt US federal government will let our ten too big to fail oil/gas firms die. I hope they decide to buy fossil fuel as mineral rights at a high price from those ten too big to fail oil/gas firms rather than subsidizing further extraction of oil/gas.
I think it is a necessary first step in the process of ending fossil fuel use. In that light it is great news. No it isn't Exxon filing for bankruptcy (yet) but that would only happen long after things like this have already happened. The end of fossil fuel process begins! It is a significant sign of things to come. There is a glut of oil and investment Is fast becoming divestment! The corner has been turned on fossil fuel use and it shows. The whole industry is contracting starting with coal. Investors are seeking to invest in renewables in droves.
They are only private firms and if they are archaic then they should fail and then invest in renewables. Why shouldn't they fail just because they are big? Lol I guess you must own stock in Exxon...
Arrgghh. Corporations, that are not people can rack up debt, destroy the environment and lives, contribute to global warming, still maintain constitutional rights only meant for human beings, and then declare bankruptcy.
Meanwhile college students, who are not only people but the next generation of leaders, and have done nothing more than attain an education (which benefits society on so many levels) are not allowed to declare bankruptcy.
Seems to me that a social justice corporation might be formed to buy up their debt, and then declare bankruptcy.