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2 years ago

Shale oil boom goes bust as expected production dips for first time in years

The government expects oil output through the most productive U.S. shale formations to discover its first monthly decline in additional than four years.

The U.S. shale oil boom that powered the nation’s highest crude oil production levels in decades is apparently scaling down due, partially, with a glut of supplies.

Oil output on the most productive U.S. shale fields is anticipated to drop off next month by 57 million barrels of crude daily from April to May, the U.S. Energy Information Administration said Monday. That might represent the first monthly decline in more than four years, based on Reuters.

The EIA forecasted which the seven shale formations — Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica — will produce a total of 5.56 million barrels of crude oil daily next month, down from 5.62 million barrels daily in April. While the most productive formation, Permian, will discover slightly higher output — by 11,000 barrels daily, to a single.99 million — output in the next-highest producer, Eagle Ford, will drop 33,000 barrels daily while Bakken’s output will decline by 23,000 barrels the following month.

(Fortune magazine recently wrote about oil boomtowns in North Dakota’s Bakken region, the location where the local economy is feeling the results of lower oil prices and might face a devastating blow if output there tails off considerably.)

In recent years, an oil boom in shale country helped U.S. crude production hit its highest levels in 40 years. The seven regions landed 95% of domestic oil production growth between 2011 and 2013, based on the EIA.

The EIA’s predicted decline in production comes after months of global oil prices plummeting caused by a worldwide oil glut. The price for a barrel of crude dropped by over fifty percent over the past 10 months, producing many oil companies to take their production levels amid falling share prices.

2 years ago

Deval Patrick joins Bain Capital to lead new social impact fund

Mitt Romney’s successor is joining his old private equity finance firm, but an incredibly different mission.

Former Massachusetts Gov. Deval Patrick has joined Bain Capital like a director and head of a new investment platform centered on “social impact,” Fortune has learned.

Yes, identical Bain Capital that's founded by previous Massachusetts Gov. Mitt Romney, whose handpicked GOP successor was beaten handily by Democrat Patrick in 2006. The identical Bain Capital that was treated such as a vulgarism by President Obama’s reelection campaign, which is why Patrick played a vital surrogate role. The same Bain Capital which, despite its many philanthropic endeavors, isn’t famous for taking “social impact” under consideration when coming up with investments.

Patrick, however, is not to become focused on any sexual appearances (and, to the record, he did defend Bain back then). Nor does he have involvement in a cabinet position inside a possible Clinton White House, as he’ll soon be meeting with prospective investors, promising them that she’ll be with Bain to the foreseeable future.

Ahead of leaving office earlier this year, Patrick told Fortune that they likely to carry out a “portfolio” of activities. The primary section of that portfolio seemed to be a “global ambassador” role with the group looking to bring the Olympics to Boston — Bain Capital director Steve Pagliuca co-chairs the Boston 2024 Olympics Finance Committee — in which he reportedly could well be paid $7,500 on a daily basis. But Patrick is viewing the Bain opportunity as fulltime, and contains no intends to accept other jobs. He’s even dropped the “paid” section of the Olympics gig, although continues to attend some strategic meetings (unpaid) when requested by Boston 2024.

With Bain, the 58 year-old Patrick is anticipated to launch the latest line which will raise funds to get companies that may (in principle) deliver strong investment returns while also doing good. The kind of economic propositions that are actually wanting to conserve the people they touch, beyond just selling them something. One example might be a company that operates health clinics in low-income areas, or one that delivers nutritious meals to public schools.

Patrick is going to be faced with constructing a team, and then raising a fund that likely can have the flexibleness to buy a number of asset classes (equity finance, investment capital, mezzanine loans, real property, etc.). Not sure yet within the fund target, or when solicitation will become. New Orleans escorts service

Another thing Patrick doesn’t obviously have is a model to follow. There are several investment firms that operate within social impact umbrella, but a majority of are additional narrow with regard to investment focus (that has a heavy emphasis toward early-stage capital raising). Patrick oversaw the creation of “social impact bonds” in Massachusetts, but those were relatively small with returns limited to around 5.33% (Bain’s target ROI will probably be substantially higher). New Orleans entertainment service

In other words, Patrick will probably be blazing his very own trail. And, whether it breaks down to, someday we might have another former Massachusetts governor with Bain Capital on his resume, asking Americans to elect him president.