March 8, 20223 yr 3 hours ago, vikas83 said: No. No it won't. I don't know why I have to keep saying this, but... Oil and gas producers in the US simply can't get traditional bank financing anymore due to the adoption of ESG mandates by banks and large institutional investors. They aren't quite as screwed as coal producers, but it is getting there. Before 2019-ish, these guys could get mid-single digit debt financing in order to bring more capacity online. Remember, shale is a VERY capital intensive business as the wells have short lives -- you need to be constantly drilling. Now, if they can even get financing at all, the cost is double digits, but that financing has to come from specialty lenders that don't take institutional money (e.g., family offices). That overall pool of capital is miniscule in comparison to traditional bank financing markets. If you want the price of gas to go down, start petitioning your pension funds, banks, etc. to drop the ESG madness. Just to be clear, this is not a shared sentiment among all oil and gas lenders... at least down here in the south. ESG, to the lenders who actually do the lending, is more or less a joke and the money continues to be available when it makes sense to lend. It's only a thing because individual investors care about it... so it can't be ignored when they go to raise capital. But it's not some impenetrable firewall to drilling funding. it's only ever big deal when prices are low, but not today. Really, the driving factor is sentiment. As prices push higher investors will start to care less and less about ESG mandates and transparency. The money is there. And nobody cares about a 10% increase in capital cost when oil is trading at all-time highs.
March 8, 20223 yr 1 hour ago, Talkingbirds said: Have to keep the appearance of being impartial. UN BANS staff from referring to Ukraine as a 'war' or 'invasion' in a bid to avoid angering Russia The UN has banned referring to Ukraine situation as a 'war' in an email In the message, staff were told to call it a 'conflict' or 'military offensive' instead It also discouraged staff from adding the Ukrainian flag to any accounts online 🤷♂️
March 8, 20223 yr 1 hour ago, vikas83 said: I have to think the West not going beyond providing arms to Ukraine is factoring in there. I think Ukraine SHOULD be in NATO, because screw Putin. But Ukraine should be the one to decide that.
March 8, 20223 yr 1 minute ago, JohnSnowsHair said: I have to think the West not going beyond providing arms to Ukraine is factoring in there. I think Ukraine SHOULD be in NATO, because screw Putin. But Ukraine should be the one to decide that. F that. If they don't join, get them by force
March 8, 20223 yr 7 minutes ago, mayanh8 said: Just to be clear, this is not a shared sentiment among all oil and gas lenders... at least down here in the south. ESG, to the lenders who actually do the lending, is more or less a joke and the money continues to be available when it makes sense to lend. It's only a thing because individual investors care about it... so it can't be ignored when they go to raise capital. But it's not some impenetrable firewall to drilling funding. it's only ever big deal when prices are low, but not today. Really, the driving factor is sentiment. As prices push higher investors will start to care less and less about ESG mandates and transparency. The money is there. And nobody cares about a 10% increase in capital cost when oil is trading at all-time highs. Are you seriously going to try and educate me on this topic? The only place you can go is regional guys like Fifth Third, Regions, PNC, etc. But the real money center banks (e.g., JP Morgan, Citi, Goldman) won't touch it. And neither can large lending and hedge funds that take money from investors that do ESG mandates. The price of oil and gas is irrelevant to the large players, just like the price of coal is irrelevant. And LOL at 10% increase in cost of capital. They used to pay 5%, now they pay 15%. That's a 200% increase. There's a reason I can charge what I'm charging for loans right now...
March 8, 20223 yr 16 minutes ago, vikas83 said: Are you seriously going to try and educate me on this topic? The only place you can go is regional guys like Fifth Third, Regions, PNC, etc. But the real money center banks (e.g., JP Morgan, Citi, Goldman) won't touch it. And neither can large lending and hedge funds that take money from investors that do ESG mandates. The price of oil and gas is irrelevant to the large players, just like the price of coal is irrelevant. And LOL at 10% increase in cost of capital. They used to pay 5%, now they pay 15%. That's a 200% increase. There's a reason I can charge what I'm charging for loans right now... https://www.wsj.com/articles/esg-may-be-an-antitrust-violation-climate-activism-energy-prices-401k-retirement-investment-political-agenda-coordinated-influence-11646594807 ESG May Be an Antitrust Violation I’m investigating a coordinated effort to allocate markets. By Mark Brnovich March 6, 2022 4:40 pm ET The biggest antitrust violation in history may be in plain sight. Wall Street banks and money managers are bragging about their coordinated efforts to choke off investment in energy. It’s nearly impossible to raise money to explore for oil and gas right now, and we may all be experiencing rising energy costs because of this market manipulation. Russian and Chinese aggression overseas also is exacerbating inflation. Here’s what is happening: The biggest banks and money managers seek to implement a political agenda, such as compliance with the Paris Climate Accord. Then a group mobilizes: Climate Action 100+, for example, comprised of hundreds of big banks and money managers that together manage $60 trillion. The group uses its coordinated influence to compel companies to shut down coal and natural-gas plants….
March 8, 20223 yr 24 minutes ago, vikas83 said: Are you seriously going to try and educate me on this topic? The only place you can go is regional guys like Fifth Third, Regions, PNC, etc. But the real money center banks (e.g., JP Morgan, Citi, Goldman) won't touch it. And neither can large lending and hedge funds that take money from investors that do ESG mandates. The price of oil and gas is irrelevant to the large players, just like the price of coal is irrelevant. And LOL at 10% increase in cost of capital. They used to pay 5%, now they pay 15%. That's a 200% increase. There's a reason I can charge what I'm charging for loans right now... Take a breath. Lenders down here are still able raise capital and they do, regularly. ESG is a laughing matter to them. I don't know how else to explain it to you. It's just reality. You're right about many of the big players like JP Morgan who've greenwashed their investments. But there are still larger banks like Amegy to name one, and the regional lenders like you mention, that are still very much long on oil and gas and have no problems raising capital when the economics make sense.
March 8, 20223 yr 1 minute ago, JohnSnowsHair said: Well that's getting awful cute with potential nuclear war...
March 8, 20223 yr 6 minutes ago, dawkins4prez said: Well that's getting awful cute with potential nuclear war... No closer than we've always been. It'll result in more hollow sabre rattling.
March 8, 20223 yr 2 minutes ago, mayanh8 said: Take a breath. Lenders down here are still able raise capital and they do, regularly. ESG is a laughing matter to them. I don't know how else to explain it to you. It's just reality. You're right about many of the big players like JP Morgan. But there are still larger banks like Amegy, and the regional lenders like you mention, that are still very much long on oil and gas and have no problems raising capital when the economics make sense. The problem you aren't grasping is the scale. The large banks control basically all the capital. Guys like Regions are nothing compared to them. I am in the middle of raising debt for one of our companies now that ships petroleum products. Every bank of real size passed due to ESG.
March 8, 20223 yr I'm waiting for the inevitable @vikas83's response where he further shuts me down and makes me look foolish.
March 8, 20223 yr Just now, mayanh8 said: I'm waiting for the inevitable @vikas83's response where he further shuts me down and makes me look foolish. you were saying
March 8, 20223 yr Just now, mayanh8 said: I'm waiting for the inevitable @vikas83's response where he further shuts me down and makes me look foolish. Quick response. Eating lunch before a noon call
March 8, 20223 yr 12 minutes ago, Kz! said: Great piece on Tucker. Nailed it. He's an idiot, as are you. By the time the war comes to our shores, its already too late. Get a clue.
March 8, 20223 yr Just now, barho said: He's an idiot, as are you. By the time the war comes to our shores, its already too late. Get a clue. "We have to fight them over there so they don't fight us here."
March 8, 20223 yr 14 minutes ago, Kz! said: Great piece on Tucker. Nailed it. How much do you have to hate your country to still watch this traitor?
March 8, 20223 yr 38 minutes ago, JohnSnowsHair said: What's the step I'm missing here? How do "US-branded" Migs help Ukraine if they're staged at Ramstein?
March 8, 20223 yr 39 minutes ago, JohnSnowsHair said: The only people happier than Ukranians right now are Lockheed shareholders.
March 8, 20223 yr 1 minute ago, we_gotta_believe said: What's the step I'm missing here? How do "US-branded" Migs help Ukraine if they're staged at Ramstein? I suspect Ukranian pilots will travel to Germany to pick them up and fly them into, probably, Romania or something if there aren't already plans to fly them into Ukraine.
March 8, 20223 yr 2 minutes ago, mayanh8 said: I suspect Ukranian pilots will travel to Germany to pick them up and fly them into, probably, Romania or something if there aren't already plans to fly them into Ukraine. They have the available pilots and intact air fields for this? Same question for Romania, where's the nearest air field they're willing to let them use?
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