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Returns offered to shareholders from oil and natural gas E&P's began deteriorating in 2010-2011 and could not keep up with the S&P 500 Index. That likely occurred because of the 'growth over profit' business model and when the shale sector started to become heavily debt ridden. Now it does not help that it costs approximately $20 billion per year for the shale oil sector alone just to service debt. Thats $55MM per stinking day in interest !!
"Such is America’s reliance on new drilling that 55% of the country’s shale production is from wells drilled in the past 14 months, according to ShaleProfile.com" Bloomberg
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