Sunday, September 18, 2016

Fracking For Shale Oil Is A Losing Proposition

I bet you thought fracking for shale oil makes lots of money. If you did, you were wrong. Here's why:

The U.S. Oil Industry Hasn't Made a RED CENT Producing Shale

Rune Likvern of Fractional Flow has done a wonderful job providing data on the Bakken Shale Oil Field.  Here is his excellent chart showing the cumulative FREE CASH FLOW from producing oil in the Bakken:

I will simply this chart by explaining that the BLACK BARS are estimates of the monthly Free Cash flow from producing oil in the Bakken since 2009, while the RED AREA is the cumulative negative free cash flow.  As we can see there are very few black bars that are positive.  Most are negative, heading lower.

Furthermore, the red area shows that the approximate negative free cash flow (deducting CAPEX- capital expenditures) is $32 billion.  So, with all the effort and high oil prices from 2011-2014 (first half of 2014), the energy companies producing shale oil in the Bakken are in the hole for $32 billion.

You can read the rest @

Just another Ponzi scheme. Debt is not wealth.

Is there ANYTHING in the US that's not a scam?

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