As time goes by the U.S. shale [fracking] industry will behave like a BLACK HOLE, by sucking more and more energy in to produce even lower and lower quality oil and gas. At some point, the shale energy industry will collapse upon itself leaving one hell of a mess behind. While it’s hard to predict the timing of the event, it will likely occur within the next 2-5 years.
By the SRSrocco Report,
While the U.S. Shale Energy Industry continues to borrow money to produce uneconomical oil and gas, there is another important phenomenon that is not understood by the analyst community. The critical factor overlooked by the media is the fact that the U.S. shale industry is swindling and stealing energy from other areas to stay alive. Let me explain.
First, let’s take a look at some interesting graphs done by the Bloomberg Gadfly. The first chart below shows how the U.S. shale industry continues to burn through investor cash regardless of $100 or $50 oil prices:
The chart above shows the negative free cash flow for 33 shale-weighted E&P companies. Even at $100 oil prices in 2012 and 2013, these companies spent more money producing shale energy in the top four U.S. shale fields than they made from operations. While costs to produce shale oil and gas…
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