THEY TELL US WE’RE ON THE CUSP OF AN OIL & GAS REVOLUTION.
But what if it’s all just a short-term bubble? http://shalebubble.org/
The Reality is that the so-called shale revolution is nothing more than a bubble, driven by record levels of drilling, speculative lease & flip practices on the part of shale energy companies, fee-driven promotion by the same investment banks that fomented the housing bubble, and by unsustainably low natural gas prices. Geological and economic constraints – not to mention the very serious environmental and health impacts of drilling – mean that shale gas and shale oil (tight oil) are far from the solution to our energy woes.
▶ High productivity shale plays are not ubiquitous and wells suffer from very high rates of depletion.
▶ Because depletion rates are so high and drilling locations increasingly unproductive, industry is forced to drill ever more wells just to offset declines.
▶ Wall Street promoted the shale gas drilling frenzy in order to profit from mergers & acquisitions, resulting in prices lower than the cost of production.
DO READ ON, NEIGHBORS.