The entire shale energy boom is new Ponzi scheme organized by the same Wall Street banks who created the mortgage securitization fraud

Engdahl: Shale Energy is a Ponzi Scheme

April 15th, 2013

Editor's note: The opinions reported in this article are directly contradicted by the latest report from the U.S Energy Information Administration which was issued two days after this article was posted.

Econintersect: A shocking charge has been leveled by American-German freelance journalist, historian and economic researcher F. William Engdahl. He says the flamepurported shale gas (and oil) revolution is a fraud because the costs exceed the output. Engdahl maintains that the entire shale energy boom is new Ponzi scheme organized by the same Wall Street banks who created the mortgage securitization fraud that enabled the U.S. real estate bubble. The scheme depends on high production volumes. These are obtained initially but subside dramatically faster than for conventional wells, according to Engdahl. Only a few insiders know this and are fleecing gullible investors, he says.
Follow up:

Engdahl indicates strong evidence of the fraud is provided by Chesapeake Energy (NYSE:CHK), the "premier shale gas exploiter".

About Chesapeake he says:
Its stock shares fell from $80 in 2008 to just above $20. It’s selling shale assets to pay down debt and its debt is rated “junk.” As one industry analyst puts it, having America’s second largest natural gas producer almost completely walk away from the shale gas business is a great indication that today’s natural gas price bubble is on the verge of popping.

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[link to econintersect.com]