Yeah, pretty scary stuff. So I gave this presentation to about 200 kids at a middle school in Evergreen, Colorado about fracking. And the kids there were super into it. They were intrigued by the content, energized by the music we performed, all the teachers and principals were there, it was incredible. So afterwards, a lot of the kids went home, excited, and told their parents about it. And it turns out that some of the parents worked for the natural gas industry. So those parents were pretty pissed off that we were talking to their kids about why fracking is one of the most dangerous things happening in our backyards. It’s how they made their livelihood.
What happened next was pretty immature. They went onto our YouTube channel and said that we were communists brainwashing their children, that we forced them to watch our presentation and sing lyrics of our songs. It was total bull.
It was intense. There were some crazy threats. I’d say my mom’s pretty overprotective about this stuff. She was kind of freaking out a little bit.
At $100 a barrel, the average oil company can generate net income on the order of $15 a barrel. But as prices fall, this margin evaporates quickly. A decline of $10 to $90 leaves a margin of only $5, that means profits plunge 66%. Thus, at current prices, the average oil company won’t be profitable at all, and the weaker ones, loaded up with debt, are the walking dead. A perfect example is Goodrich Petroleum GDP -0.38%, which announced some big new discoveries in the Tuscaloosa Marine Shale. While the oil may be there, “the play is not economic at current oil prices,” wrote Cowen & Co. analyst Christopher Walling yesterday, adding that “liquidity is a growing concern.” Goodrich shares are down 70% in six months.