When Wall Street tells you and your customers and banks you are running a Ponzi scheme, in so many words, you and they should pay attention. Fracking has been promising unbeatable profits to banks and investors for decades, and has nothing to show for it but looming bankruptcies. Divest.
But don't take my word for it. Analysts have been telling anyone who will listen for years.
Shale gas is a Ponzi scheme: Analyst - CNBC.com
May 28, 2015 - Uploaded by TheStreet: Investing Strategies
Shale oil is unique in the way it is produced because it yields a very front-loaded result. Shale producers get 50% or more their oil in the first year that a well is in service. The companies continuously drill new wells to be at peak production levels and keep the cash flow strong. As a result, there has been a massive amount of capital that has come into the market to chase these investments.
Ultimately what happens is something that Greenlight Capital's David Einhorn spoke about at the Sohn Investment Conference in May in terms of enterprise and capital inflows and outflows. Essentially, the industry looks at cash coming out of the business and doesn't look at the cash that has to go into the business.
Dan Dicker, senior energy analyst at TheStreet, tells Jill Malandrino that he likens shale oil to a Ponzi Scheme. Fundamentally, the oil supply glut remains strained. As crude moves lower, producers dial back on production and hope for a demand increase and draw downs in supply. But when crude moves higher, producers rush to get wells back on line flooding the market with new product which stresses the supply glut.
US Fracking Industry is Losing Epic Amounts of Money—DeSmog
In 2008, Aubrey McClendon was the highest paid Fortune 500 CEO in America, a title he earned taking home $112 million for running Chesapeake Energy. Later dubbed “The Shale King,” he was at the forefront of the oil and gas industry's next boom, made possible by advances in fracking, which broke open fossil fuels from shale formations around the U.S.
What was McClendon’s secret? Instead of running a company that aimed to sell oil and gas, he was essentially flipping real estate: acquiring leases to drill on land and then reselling them for five to 10 times more, something McClendon explained was a lot more profitable than “trying to produce gas.” But his story may serve as a cautionary tale for an industry that keeps making big promises on borrowed dimes — while its investors begin losing patience, a trend DeSmog will be investigating in an in-depth series over the coming weeks.
See also Rachel Maddow, Blowout, for more on McClendon, fracking, and the most corrupt industry on Earth.
Jan 16, 2019 - Uploaded
Estimates of recoverable oil are proving wildly wrong. Art Berman, geological consultant with over 37 years ...
Oil – Reason.com
Jun 1, 2018 - Uploaded by ImperialOil
Mar 9, 2018 - Uploaded by Fox Business
Centennial Resource Development CEO Mark Papa says the volume of U.S. shale oil will be disappointing ...
Deep Shale Oil & Gas▶ 7:52
Feb 24, 2019 - The once-powerful partnership between fracking companies and Wall ... few years ago, shareholders have no interest in paying for unprofitable ...
Divest
My son Certifiable Genius is about to get a 401K through his recent employer. He is about to ask them to provide a no-carbon fund for him to put his money into. Most companies don't have their financial management companies provide one, because nobody in management thought of it, and none of the employees asked.
More and more of us are asking. And not just at work.
$11 trillion divested.
That's just one of many such programs.