In 2012 $186 billion was invested in looking for new oil in the US. That is 20% more than in 2011 and the most every spent on oil exploration in the US. And what did that unprecedented amount of investment get us? A 13% increase in oil reserves and a $26 billion dollar loss for the oil companies. Shale oil is NOT an oil boom, it is an investment boom, with the lowest return on investment ever recorded for oil exploration in the US. Oil companies LOST $26 billion last year, that is NOT sustainable. Unless oil rises above $100/barrel we will soon stop drilling for shale oil in this country. Shale wells have a life span of only about 4 years, which means when we stop drilling the oil stops flowing very quickly, unlike traditional oil wells that can last 20 years or more. Read beyond the headlines and you will soon find out this is "oil boom" is simply another bubble, and one that will pop very soon.
Posted on: Sat, 22 Jun 2013 03:54:58 +0000
Trending Topics
Recently Viewed Topics
© 2015