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Frack Now, Pay Later: Oil Services Cos Turn Into Banks

http://fortune.com/2015/08/07/frack-now-pay-later-services-firm-tell-beleaguered-drillers/

When an industry gets bad enough that services companies are offering financing...this ends badly.

Comments

  • edited August 2015
    Elsewhere in Energy
    Freight rail traffic falls sharply on weaker coal, oil demand
    Aug 7 2015, 17:54 ET | By: Carl Surran, SA News Editor
    ...an increase in container volumes could not offset a sharp decline in oil and coal shipments, according to the latest monthly report from the Association of American Railroads.The number of carloads carrying oil and petroleum products fell 13.6% Y/Y to 67.9K last month, while coal volumes sank 12.5%; container shipments rose 3.8% to 1.2M, and traffic overall fell 1.8% to 2.7M
    http://seekingalpha.com/news/2711386-freight-rail-traffic-falls-sharply-on-weaker-coal-oil-demand
    Technical Commentary on Railroads Stocks - CSX Corp., Union Pacific, Trinity Industries, Canadian Pacific Railway, and Greenbrier Cos.
    NEW YORK, August 6, 2015 /PRNewswire/ --
    CSX Corp.'s stock has lost 6.19% in the last one month, 13.27% in the previous three months and 14.27% on YTD basis
    Over the last one month and the previous three months, Union Pacific Corp.'s shares have lost 2.73% and 10.61%, respectively. Additionally, the stock has plummeted 19.41% on YTD basis.
    Over the previous three months and since the beginning of 2015, Trinity Industries Inc.'s shares have fallen by 4.17% and 0.12%, respectively. However, the stock has gained 9.67% in the last one month.
    Canadian Pacific Railway Ltd's shares have lost 1.41% in the last one month, 15.26% in the previous three months and 17.51% on YTD basis.
    Over the last one month and over the past three months, The Greenbrier Cos. Inc.'s shares have declined 7.22% and 30.59%, respectively. Furthermore, the stock has lost 17.91% since the start of this year.
    http://www.prnewswire.com/news-releases/technical-commentary-on-railroads-stocks---csx-corp-union-pacific-trinity-industries-canadian-pacific-railway-and-greenbrier-cos-520897441.html
    Landing | Fri Aug 7, 2015 8:36pm EDT Related: GLOBAL ENERGY NEWS
    Shipping: Oil tankers sheltered from gas, dry bulk weakness
    BY SINEAD CAREW, REUTERS
    Maritime stocks have broadly fallen this year as weak demand for some commodities and goods in Asia and oversupply of ships have hurt much of the industry, with one notable exception: Oil tankers have been doing a booming business and their shares are up as much as 50 percent year to date.
    Shippers of crude oil and refined oil products have been able to charge their highest daily rates in years because elevated oil production has led to strong shipping volume. Investors see high volume oil shipments keeping the tanker fleet busy as the Organization of the Petroleum Exporting Countries focuses on market share over oil prices.

    "The next 18 months or so should be pretty good," said Ian McDonald, an analyst at asset manager T. Rowe Price, which holds shares of Teekay Tankers, (TNK.N), which have risen 42.7 percent this year.
    Not so booming are shipping firms specializing in liquid natural gas, where fleets are about 10 percent bigger than they need to be, given slowing growth in demand from key markets including China, Japan and South Korea, said Paul Wogan, chief executive of LNG transporter GasLog. He sees a ramp-up in Australian shipments and increased exports from new U.S. facilities in 2016 improving the outlook in 2016.
    http://www.reuters.com/article/2015/08/08/us-markets-stocks-usa-weekahead-idUSKCN0QD01C20150808
    Dow Transports
    https://www.google.com/finance?q=INDEXDJX:DJT&sq=dow transports&sp=1&ei=AV3FVaMfncSMAcnaj5gB
    Banking/Credit
    US consumer borrowing hit another record in June, good news for the American economy.
    Americans piled on another $20.7 billion in debt in June, bringing total consumer borrowing to a record $3.42 trillion, the Federal Reserve reported Friday.
    In June, borrowing in the category that includes auto and student loans rose by $15.2 billion. Borrowing in the category that includes credit cards rose by $5.5 billion.
    The Fed's monthly report on credit does not cover home mortgages or other loans secured by real estate such as home equity loans
    The American economy grew at annual rate of 0.6 percent from January to March and 2.3 percent from April through June. Economists expect growth to pick up to about a 3 percent pace the second half of the year.
    Consumers are drawing confidence from an improving job market. On Friday, the Labor Department said employers added 215,000 jobs in July and unemployment remained at a seven-year low 5.3 percent.
    Over the past year, consumer borrowing is up 6.5 percent. Borrowing rose 7.7 percent in the student and auto loan category and 3.5 percent in the credit card category
    http://www.chicagotribune.com/business/ct-consumer-borrowing-record-20150807-story.html
    Few in U.S. have received credit cards with chips, poll shows
    Even as an Oct. 1 deadline approaches to replace Americans' out-of-date credit cards with new cards embedded with computer chips, the vast majority of Americans still have not received their new cards and only a small minority are using the chips at all, a new Associated Press-GfK poll shows.
    The poll finds that roughly one in 10 Americans have received the new chip-enabled credit cards. Of those who have received the cards, only one-third say they've actually used the cards as intended in new specialized credit card readers.
    In an effort to combat mounting credit card fraud, U.S. banks are making a push to replace the magnetic-stripe credit cards Americans use with new ones that have tiny computer chips embedded in them, which are far more secure.
    (in the why do people rob banks category)
    The older type of cards, long since been phased out in other major countries, have become easy targets for thieves, who have found multiple ways to exploit the security flaws in the decades-old magnetic stripe technology. Even though the U.S. counts for 25 percent of all credit card transactions, half of all credit card fraud happens in America, according to a report by Barclays.
    In 2012, Visa, MasterCard and other payment processors set a soft deadline of Oct. 1, 2015 for merchants to have their equipment changed to accept the new cards, but industry representatives estimate that only half of merchants will be ready in time. Banks say it will take well into 2016 to replace all Americans' credit and debit cards.
    http://www.chicagotribune.com/business/ct-credit-cards-with-chips-20150806-story.html
  • edited August 2015
    @scott Thank you for the subject post
    @TSP_Transfer
    Thank you for the reports..........
  • The user and all related content has been deleted.
  • edited August 2015
    Hi @Maurice
    Chip/EMV cards info here........videos

    The reader for the card does have to be a chip reader device; not to be confused with a "dip" reader in ATM's, where one dips and then removes the card. This data is read from the mag stripe on the card. The chip reader is a proximity type reader with the card remaining in position during the transaction.
  • Believe I used one a couple of months ago at Walmart. I went to swipe the card & after the second swipe the clerk comes around the check out & insert it into a slot. Shortly after that the transaction is done & she says to remove the card & I'm on my way.
    Nothing like that since , so I'm think new readers are limited .
    Derf
  • Maurice said:

    While I feel technology challenged to ask this question, I think I'm not the only one in this boat. How do you use the credit cards with a chip? I have one, but haven't seen anything in stores that tell me how.

    Some stores have you put it in a slot. There are other readers where there is a blue plastic backstop looking shield on the top of the reader and you hold the car over that until you hear the beep. That's what I use for mobile payment.
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