Anonymous Coward
User ID: 59511959
 Sudan
06/25/2014 05:31 PM
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Report Copyright Violation | Forbes: 9 Reasons Why Oil Prices May Be Headed For A Bust Get ready to rumble!Despite the optimism that many people have about the shale energy boom, I believe that it only slightly delays the ending of the “cheap oil” era and that Peak Oil theorists will still be right in the longer run. While a crude oil correction is likely to occur within the next few years, I do not expect oil prices to remain at low levels for a very long time. The energy returned on energy invested or ERoEI for shale oil is far lower than for conventional oil, which is evidence that cheap oil is becoming much more scarce even though overall U.S. oil production has increased.
I am also growing increasingly concerned that the U.S. shale energy boom is actually another post-2009 economic bubble (it would be a part of the commodities bubble). In a zero-percent interest rate environment like we are currently experiencing, any economic boom can devolve into a bubble. Shale energy extraction is a very capital-intensive business that relies heavily on cheap credit to survive. Shale oil wells experience much faster decline rates than conventional oil wells, which means that energy companies must keep drilling at a furious pace just to maintain their production – a very costly proposition that is typically funded by copious amounts of debt. [ link to www.forbes.com] |
Anonymous Coward
User ID: 59606573
 United Kingdom
06/25/2014 05:45 PM
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Report Copyright Violation | Re: Forbes: 9 Reasons Why Oil Prices May Be Headed For A Bust not 9 NO!  |
Anonymous Coward (OP)
User ID: 59511959
Sudan
06/25/2014 06:39 PM
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Report Copyright Violation | Re: Forbes: 9 Reasons Why Oil Prices May Be Headed For A Bust |
