Shale Boom, Shale Bust: The Myth of Saudi America
Shale Boom Abstract:
Just about everyone has heard something about the ‘revolution’ in shale oil. Hydraulic fracturing (fracking) of rock formations unique to the United States offers the promise of cheap and abundant energy, terrific economic growth and jobs – lots of jobs. But in 2014, something went terribly wrong with this rosy scenario of “Saudi America”: An unexpected collapse in the price of oil that’s bankrupting the oil patch, destroying jobs and threatening any plans of a renewable energy future.
What happened? Why has this miracle ‘revolution’ generated so many losers and so few winners? Why isn’t the United States any closer to energy independence than it was before oil from shale was even imagined? What can be done to put the markets and the industry right so that shale can deliver on even some of what’s been promised?
- File Size: 4653 KB
- Print Length: 124 pages
- Page Numbers Source ISBN: 0996489703
- Simultaneous Device Usage: Unlimited
- Publisher: Dan Dicker (June 8, 2015)
- Publication Date: June 8, 2015
- Sold by: Amazon Digital Services LLC
- Language: English
- ASIN: B00YB4QEJM
- Text-to-Speech: Enabled
- X-Ray:Not Enabled
- Word Wise: Enabled
- Lending: Not Enabled
Buy Shale Boom, Shale Bust here
About the Author
Dan Dicker had more than 20 years’ experience on the floor of the New York Mercantile Exchange, where he traded crude oil, natural gas, unleaded gasoline, and heating oil futures contracts for his own accounts. His previous book, Oil’s Endless Bid: Taming the Unreliable Price of Oil to Secure Our Economy, was published by John Wiley & Sons in 2011 and was named one of that year’s Best Business Books by both Bloomberg BusinessWeek and Library Journal.
Dan is currently President and partner of MercBloc LLC, a wealth management firm, as well as a senior contributor at Jim Cramer’s TheStreet.com, where he writes on energy markets and investing in the energy space. He has lent his expertise as an oil markets analyst in hundreds of live radio and television broadcasts on CNBC, Bloomberg, MSNBC, CNN, NBC Nightly News, CNN and Yahoo Finance among others. Dan lives with his wife and family in New York.
Top Shale Boom, Shale Bust book reviews
- Outstanding read for anyone wanting to understand why the oil and gas industry is in the dumpster for the foreseeable future.
A very clear and insightful explanation of the unconventional oil and gas debacle that has taken over the oil and gas industry for the last 15 years. I worked as a geoscientist and technical manager for the last 37 years and have been totally gob smacked by the insane amounts of capital investment dollars that have been pored into exploration and production for hydrocarbons trapped in impermeable shales. The majority of these plays are not economic under any realistic commodity price scenario, meaning $100/BO, and once on this production treadmill, caused by continuous drilling, companies will not admit that their cash flows will never exceed their annual capital investments. I worked for 20 years for one the companies mentioned and I was amazed that executive management showed cognitive behaviors that became ultimately disastrous to this entity.
Great read, just wish that the Oil Executives would take a look and wake up!!
- To get an insight on shale story, it’s must read.
As oil price goes down to $30 level, I thought the opportunity came. But I realized it’s bit complicated than I thought. The author emphasized the dynamics oil than than merely pointing out the fundamental.
To keep oil price afloat, according to him, the market needs the marketing force catering to the institutions which have no physical relation with oil, in that case, Investment Bank. As we know, the investment bank shut down their oil prop trading businesses because of the strict capital requirement. That’s why, he said, the price much deviates from the fundamental.
But that does not mean the fundamental of shale companies is OK, but quite opposite. The shale players are burdened with high break-even price, prone not just to the market price swing, but to Saudi’s ruthless attack. And the vultures – mega oil companies, PE – are waiting for the weakest antelope to die.
Although I don’t know why the renewable energy comes out in the later chapter – that’s why I gave 4, not 5 -, I don’t think it tarnishes the whole point of the book. So if you want dip into your toe in oil play, please, get into this book.
The Go-To Book for Understanding The Current Oil Market
This is the must read book if you want to understand the recent ups and downs of the oil market and particularly how the promise of American shale oil is not likely to result in energy independence for the USA. Dicker digs into the factors that kept oil near $100/bbl (a premise he covered thoroughly in his earlier book, Oil’s Endless Bid: Taming the Unreliable Price of Oil to Secure Our Economy) and how these have changed since 2014. He then outlines a potential future for the American oil industry, reviews the economics and political forces impacting oil pricing, and finally provides some potential investments to consider when the price of oil inevitably recovers. Dicker provides a comprehensive portrait of global oil in a concise format that is eminently readable.