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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsReports: Shale Gas Bubble Looms, Aided by Wall Street
Two long-awaited reports were published today at ShaleBubble.org by the Post Carbon Institute (PCI) and the Energy Policy Forum (EPF).
Together, the reports conclude that the hydraulic fracturing ("fracking" boom could lead to a "bubble burst" akin to the housing bubble burst of 2008.
While most media attention towards fracking has focused on the threats to drinking water and health in communities throughout North America and the world, there is an even larger threat looming. The fracking industry has the ability - paralleling the housing bubble burst that served as a precursor to the 2008 economic crisis - to tank the global economy.
Playing the role of Cassandra, the reports conclude 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..." a summary details. "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."
MORE...
http://truth-out.org/news/item/14694-reports-shale-gas-bubble-looms-aided-by-wall-street
WillyT
(72,631 posts)Arctic Dave
(13,812 posts)The only thing keeping this charade going is cheap money and high prices. The margins are so slim that it will crater the entire fracking industry, aside from the really big players, when it goes.
If people haven't figured out yet this was nothing more then a jobs program that couldn't get shipped to China.
Mnemosyne
(21,363 posts)i will have no sympathy when it crashes, greed drove it.
creeksneakers2
(7,473 posts)published a story that said yields at gas wells fall dramatically after one year.
mountain grammy
(26,621 posts)fields in North Dakota. But vast reserves of shale oil are a myth. The reality is the environmental nightmare going on here. To my friend it's a big adventure, making $30/hour to do payroll and live in the mud. They only drink bottled water.
Kolesar
(31,182 posts)Are the leases being bid up? I don't understand the mechanism.
Demo_Chris
(6,234 posts)1-Old-Man
(2,667 posts)Fracking of deep shales for natural gas extraction has alredy cut the price of natural gas by 1/3 of its price just a couple of years ago - just the opposite of a bubble - and it use on electric power production in lew of coal as a fuel will go a long way toward environmental acceptability, particularly when carbon capture and sequesterization is employed, as it will be on virtually all new constructin power plants.
Kolesar
(31,182 posts)Anytime you want to share your natural gas sequestration secret, let us know.
BTW, it's "in lieu", it's not like Lew Rockwell