On Sun, Dec 21, 2014 , 'Chris de Morsella' via Everything List < everything-list@googlegroups.com> wrote:
>You are out of touch on energy matters my dear fellow. The EIA and even > more so many investment houses such as Goldman Sachs for example where > making spectacular predictions about the extent of the capacity of the > shale deposits in the continental US; predictions that have proved > spectacularly wrong. That's true, they were spectacularly wrong. Back in 2011 they bought oil at $130 a barrel because they predicted the price of oil could only go up. Today it's selling at $60 a barrel. So I repeat me request, after that epic disaster explain to me why I should pay attention to their latest prognostication > The shale gas boom has the smell of a manic bubble Manic!? Bubble!? The price of gas is dropping like a rock, how in hell is that a bubble? > How do you think drillers financed the very significant capital > expenditures required in order to horizontal drill and then frack a > deposit? There is a very big pile of debt; debt that will never yield a > return, now that the market has collapsed. > As I explained, the collapse of oil prices is very bad news for oil drillers and those who made a bet on them, but very good news for nearly everybody else. >> New technology, in particular fracking, has been very bad news for the >> oil companies bottom line even if it's good new for the economy as a whole. > > > Who do you think is doing the fracking? > Oh I don't know, I would guess companies that are in the oil and gas sector. > > I’ll give you a hint… companies that are in the oil and gas sector. And why would they do that? Because they know that if they don't somebody else will. Selling twice as many barrels at a third the price is bad, but selling the same number of barrels at a third the price is worse. John K Clark > -- You received this message because you are subscribed to the Google Groups "Everything List" group. To unsubscribe from this group and stop receiving emails from it, send an email to everything-list+unsubscr...@googlegroups.com. To post to this group, send email to everything-list@googlegroups.com. Visit this group at http://groups.google.com/group/everything-list. For more options, visit https://groups.google.com/d/optout.
