Quote:
Originally Posted by bizkitgto
Why are people still clinging to the fact that the USA will be energy independent? It's been said over and over that the shale drillers are under water and can't keep up with their debt payments, with oil tanking it's a matter of time before they are officially bankrupt and then you'll see fire-sale prices of their land holdings (I heard somewhere around 2017-2020). The shale boom was never sustainable, just another bubble fueled by cheap credit similar to the real estate bust and dot-com bubble. From bubble to bubble we go.....
http://www.bloomberg.com/news/2014-1...t-markets.html |
The only reason they are underwater is due to the low oil prices.... Which is exactly my point. If oil prices were at their natural levels the shale fields would be profitable.
Instead OPEC is using the same simple and dirty trick all monopolists use. Sell at artificially low prices, drive the smaller and developing competition out of business, and then jack up the price.