ApprovedBusinessBusiness and finance

America’s shale firms don’t give a frack about financial returns

INSIDE the boardrooms and bars of Houston, the spiritual capital of America’s energy industry, the swagger is back. The oil price may only be at $48, or half the level it was three years ago. But shale fracking—the business of getting oil and gas out of rocks by blasting them with water and sand—is booming once again after the crash of 2014-16. Exploration and production (E&P) companies are about to go on an investment spree. Demand is soaring for the industry’s raw materials: sand, other people’s money, roughnecks and ice-cold beer.

Shale’s second coming is testament to Texan grit. But the industry’s never-say-die spirit may explain why it has done next to nothing about its dire finances. The business has burned up cash for 34 of the last 40 quarters, according to figures on the top 60 listed E&P firms collected by Bloomberg, a data provider. With the exception of airlines, Chinese state enterprises and Silicon Valley unicorns—private firms valued at more than $1bn—shale firms are on an unparalleled money-losing streak. About $11bn was torched in the latest quarter, as capital expenditures exceeded cashflows. The cash-burn rate may well rise again…Continue reading

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Social Networks

Trending Storylines Hone LinkedIn’s Relevance

LinkedIn has begun rolling out Trending Storylines, offering curated feeds of the most interesting developing stories in a member’s industry. Storylines are personalized for members through a combination of algorithms and the choices of LinkedIn’s editorial team. The feeds may include perspectives from relevant influencers and news sources, as well as individuals in the member’s network.

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Tablets

Apple Unveils Budget-Friendly iPad, Dresses iPhone in Red

Apple has announced an iPad update, a red iPhone 7 and 7 Plus, and a new video-editing app for iOS. The iPad upgrade has a 9.7-inch, 2048 x 1536-pixel Retina display and Apple’s A9 64-bit processor. The unit will come in silver, gold and space gray with a starting price of $329 for 32 gigabytes of storage and WiFi-only support. It will cost $459 for a 32-GB unit with WiFi and cellular support.

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