Fracking Knowledge Base
- Thread starter Locutus
- Start date
I went and pre-bought the season on iTunes, lol. If I miss and episode, it downloads the next day.
I've spent most of this week re-watching Season one......
I've spent most of this week re-watching Season one......
Shale Fracking Is a “Ponzi Scheme” … “This Decade’s Version of The Dotcom Bubble” … “A Lot In Common With the Subprime Mortgage Market Just Before It Melted Down”
Posted on September 19, 2014 by WashingtonsBlog
A Losing Bet
In 2011, the New York Times wrote:
“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” an analyst from IHS Drilling Data, an energy research company, wrote in an e-mail on Aug. 28, 2009.
A review of more than 9,000 wells, using data from 2003 to 2009, shows that — based on widely used industry assumptions about the market price of gas and the cost of drilling and operating a well — less than 10 percent of the wells had recouped their estimated costs by the time they were seven years old.
Although the bankers made a lot of money from the deal making and a handful of energy companies made fortunes by exiting at the market’s peak, most of the industry has been bloodied — forced to sell assets, take huge write-offs and shift as many drill rigs as possible from gas exploration to oil, whose price has held up much better.
***
Now the gas companies are committed to spending far more to produce gas than they can earn selling it. Their stock prices and debt ratings have been hammered.
Posted on September 19, 2014 by WashingtonsBlog
A Losing Bet
In 2011, the New York Times wrote:
“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” an analyst from IHS Drilling Data, an energy research company, wrote in an e-mail on Aug. 28, 2009.
A review of more than 9,000 wells, using data from 2003 to 2009, shows that — based on widely used industry assumptions about the market price of gas and the cost of drilling and operating a well — less than 10 percent of the wells had recouped their estimated costs by the time they were seven years old.
Although the bankers made a lot of money from the deal making and a handful of energy companies made fortunes by exiting at the market’s peak, most of the industry has been bloodied — forced to sell assets, take huge write-offs and shift as many drill rigs as possible from gas exploration to oil, whose price has held up much better.
***
Now the gas companies are committed to spending far more to produce gas than they can earn selling it. Their stock prices and debt ratings have been hammered.
I like my digital library.....
I want to know what's happening with Tom and who the hell this Berlin guy really is! Peter Stormare is an amazing actor, I can't wait to see him and Spader on screen together.
excuse me, you'll need to show your fracking ID to barto to proceed...thank you in advance. :lol:
Brad Wall has encouraged New Brunswickers to vote for fracking....."underlining the technology's safety and urging the country to develop its resources..."
Saskatchewan has been fracking for 40 years, creating 44,266 oil and natural gas wells in the province,. 1380 wells were fracted in 2013, and 1320 in 2012. ".......each well has provided employment for 10 to 12 people directly, and numerous spin-offs."
(Telegraph-Journal, Set. 20, 2014)
Saskatchewan USED to be a have-not province, now they have the lowest unemployment rate in the country.
Saskatchewan has been fracking for 40 years, creating 44,266 oil and natural gas wells in the province,. 1380 wells were fracted in 2013, and 1320 in 2012. ".......each well has provided employment for 10 to 12 people directly, and numerous spin-offs."
(Telegraph-Journal, Set. 20, 2014)
Saskatchewan USED to be a have-not province, now they have the lowest unemployment rate in the country.
It's not because of oil or ng though.
Go ahead and frack your brains out. Importing energy is the worst thing for an economy.