How Fracking Became America's Money Pit
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- เผยแพร่เมื่อ 2 มิ.ย. 2024
- For most any nation, let alone a superpower, energy independence is considered the geopolitical holy grail. So when fracking lured in American investors, everyone had high hopes the country would finally break free of OPEC. But oil is a complex game, and 2020 saw sharp declines in demand caused by the cartel’s maneuvering, shale oil’s oversupply, and now the devastating effects of the coronavirus. What’s worse, the startup mentality of the U.S. fracking industry promised investors mythical growth and nonexistent returns. In the end, it burned a $340 billion hole in Wall Street’s pocket.
Video by Matt Goldman and Mike Byhoff
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Fracking executives getting huge bonuses while the company loses money. That's what we called looting the company. Or looting the creditors.
True, but, technically speaking, that's just called capitalism. Neoliberalism, specifically.
Meh. I’d rather the executives who run the company get the bonuses than the investors or creditors that expect the money, sitting on their asses.
@@hellosammy4105 but there are far reaching consequences that will eventually affect the ordinary people. One that is evident is the debasement of the US dollar. Which will affect the purchasing power of pensions that retiree are expecting to live on.
@@hellosammy4105 Please don't say that. If you don't treat the investor / creditors properly. Who will invest in the project?
It was a bad investment decision by the investor. And the bad decision was looted by the managers.
Its called capitalism.
I worked in the oil fields in the early 80s. What most people don't realize is that the technologies for fracking used today were around then. It hasn't been technology that has caused the fracking boom - it is an artifact of very low interest rates.
@@zeynand4039 A lot of investment decisions in the oil industry are based on basic NPV, IRR economics with high upfront costs and long term cashflow. Lower interest rates increases the value of those cashflow on the income side. On the outflow side, lower interest costs reduces expenses and makes banks more willing to give credit to risky ventures.
I did fracking for B J Hughes back in the 80's. I guess there is little actual stock photography of fracking because all you ever see are images of drilling. A site has a very distinctive look when a fracking crew is rigged up. There are a line of huge trailer mounted pumps on 18 wheelers, enormous "sand cans" that contain sand for the mix, a "blender" that mixes sand and gel, and flat beds carrying gel and chemicals. When these pumps are on they are putting thousands of pounds per square inch of this mix of gel, water, and sand "down hole" to fracture the formation. It is deafening and extremely dangerousu. You couldn't hear a gun shot. A frac crew can be on the site for over 24 hours straight. Surely there's some stock footage of this somewhere.
Sounds like a pyramid scheme. For profits you need to keep growing and selling despite a flawed business model.
It is. It's even got a (global) cartel (of nation-states), and relies upon massive subsidies (wealth redistribution from laypeople to unprofitable corporate endeavours that wouldn't be economically feasible without redistribution).
That’s exactly what it is... and we all have accepted criminals to be our leaders...
You will be absolutely discussed in how much of the world's largest companies operate for years in this exact same fashion. Tesla, Facebook, Apple, Microsoft, Amazon are just a few major companies that have at one point or another operated for years in that manner. Major companies are built by convincing investors to give you the money to pay other investors to in turn pay the initial investors and yourself as you recklessly expand so other investors will pay off another layer of investors. Then you have an IPO where all your previous investors recoup their entire investment and a make a ridiculous return as many new smaller investors flood in and inflate the value allowing for company stock to be sold and borrowed against to keep expanding until they are finally somehow profitable or bankrupt and in prison. Thats essentially how Corporate America operates. Its not about making a company that makes money, its about getting other people to not just pay you but pay your expenses as you stack the house of cards.
The scheme is that the stocks, ETF's, and derivative products were worth more as a speculative betting platform than the actual oil was.
@@Veritas-invenitur you may be right but what does a small investor do? I've got money doing nothing in the bank and wanted to start buying shares or something else.
Notice how the oil executives had bonuses of 100% of their ‘expected’ returns....
They never take the fall, they always come out smelling like a rose.
Reminds me of pump and dump. The people who didn't make money were just "stupid".
I mean, imagine being able to make your own salary based on gulligle investors.
That's not what they said. They said 100% of their target bonuses not "expected returns" whatever that is supposed mean.
@Sneaky Pete probably their underpaid/overworked workers which got laid off indefinitely without warning or compensation. Lazy bunch
Who remembers Cramer recommending Sanchez Energy and Whiting Petroleum? (both bankrupt now)
And saying 'Stay away from Tesla'
Cramers a donkey
3 no. Stop listening to Cramer when he missed the real estate collapse of 2009.
No who listens to that nut. Belief in the Efficient Market Hypothesis will make you much less poor. The other side always knows more than you.
Jim Cramer is a hack, not sure why he still has his own show
I invested in a small oil driller overseas. They had to go a little deeper than they'd originally planned. So when they finally hit, oil was around $40. The stock went down quite a bit. The founder voiced joy when he sold the company. But then he got his shares for nothing.
reward an executive on growth and no profits, super low interest loans?? I wish could happen for students Lol
along with altering FOREVER clean ground water sources, that won't be there when needed a decade, a century, or even a millenia away.
I always felt this whole industry was a symptom of bad business math and low interest rates.
Like Tesla stock?
In theory it should have worked. Oil demand keeps rising (bar the odd pandemic) and so do most demand forecasts. Demand in the US is at least flat-steady as most renewable power is just replacing power utilities existing fuel bills (which have not been oil for decades). Cheap gas drove gas power plants (again replacing coal/planned shutdown of nuclear). Fracking was still cheap to do (the tech was well known by now). Oil might be cheap to drill in the middle east but its nowhere near demand. It did not need high tech/high cost oil major expertise to find the oil and most labour costs were still "low". Whats missing is that oil majors have the cash reserves to weather an oil price shock unlike wildcats, there needed to be major consolidation to bring scale and wildcats always wanted to be the one taking over not the reverse. Gas networks were weak so gas had nowhere to go and so the price crashed (gas is expensive to export by ship unlike oil). What fracking can do is allow a country to meet its own demand and stop importing (argentina is the next fracking hotspot) if it can avoid repeating what the US allowed. Ironically a tax on high carbon oil might have meant imported oil would have been more expensive vs "local" oil. Canadian Shaleoil will be the next to implode bar Canadians own internal demand. Remember Saudi and Russian governments rely totally on oil revenue and demand from its clients is not guaranteed especially as climate change is driving demand growth reduction from its closest customers.
Cost of fuel would just simply be higher is fracking was too costly.
@@robertatkins272 , It funny you mention that. No doubt Tesla took advantage of low interest rates to fuel its growth, but today Tesla has one of the lowest relative amount of debt compared to the other auto makers. US auto makers are drowning in debt.
@@stephendoherty8291 How do you feel about Shale now?
All fun until the tide goes out and the bankruptcy starts.
Its all fun and games until someone shits there bed, and has to tell everyone about it.
Dude - that's called capitalism. And capitalism involves risk!
@@MojoRisingTV thats when people panic buy loo rools
Got to love how they keep talking about Frac and constantly just show drilling rigs
I was watching a documentary on HBO i think, and it was about fracking. It showed maybe 2 frack jobs but kept showing drilling rigs and cameras recording saying "see, theyve been fracking for months now this is ridiculous" and kept showing drilling rigs. The documentary lost all credibility for me.
@@Lagaholic Have you seen a documentary on TH-cam that is more accurate?
But fracking also involves drilling, you drill then you frack
You kids think fracking happens without a drill?
U don't know anything about oilfield or fracking ,obviously
For every $1.00 of payback you spent $1.10 then you tried to make it up on volume.🤔
Yes. Stupid as it may look. It was a way to legally loot the money.
Its driven on price vol. Boom or bust. No middle ground.
That's what Amazon did
No. They did not reported correctly. These journalists are lying. They should report the return per period / Year / Month or 10 Years. I do not think the investors are more stupid than these so called journalists. I think the guy was killed because he was flooding the market with oil and cutting the profit for big corporations.
What?
How many families were affected by having their aquifers polluted? How many homes have devalued because of it? There's going to be a fresh water crises in the near future and rendering ancient fresh water aquifers unusable isn't a smart idea.
There aren't any. ;-)
Buy an EV. I did. It's awesome.😎
Fracking is surprisingly friendly to the environment. Well, obviously not friendly, but nothing like the apocalypse pictures. Just do the research and you’ll see what I’m talking about.
That being said, the industries’ merits should be considered as a whole against alternatives.
Dr. Lyle Evans the industries’ merits as whole against alternatives?! The reality is that fossil fuels is a finite resource... and if humanity can’t convert to an sustainable alternative now because it isn’t profitable, or it risks the power of the men who in power now but are only going to live a short life in comparison to the future of humanity and planet earth... then what mess have we gotten ourselves into?!
Few hundred maybe? Thousands at most. Meanwhile, the energy from oil bettered the lives of millions. There are always tradeoffs. Welcome to the real world.
Fracking sucks. The environmental impacts are devastating.
One day the USA and Russia will be friends and will fight problems together ✌✌✌
The gain is so much smaller than the larger losses both financial and environmental
2020 technology is available
Let's use it
@@videomusicalirussicontradu9930 if the Democrats have their way we will be the socialist republic of the United States !
Socialism: a 2 class system, government class and peasants government dominates over non-government, if your postman gives you an order, you better obey it !
You are clueless, & have obviously never worked a real 12 hour work shift in your life
When reality is a cold slap in the face... Sad to say, I believe our future is nothing like it was back in the 1950's and 60's. We, the US, played a foolish game. In less than 50 years, maybe somethings will be remembered, the slap in the face will be a punch to the nose.
Yea, most great powers held on to power much longer than America will.
So basically you spend money to ruine your land just because you didn't wanted investe in the future...
Welcome to America
What? I’ve reread this 4 times and I still don’t understand your point.
@@DanielPennybaker instead of destroying lands with toxic fracking waste, we could've invested in alternative energy sources.
SparkyPvP please don’t fall for that anti-American propaganda intentionally peddled to demoralize and destabilize our nation. For all our faults, we are still the gold standard for all things right.
@@dr.lyleevans6915 Like healthcare? Or human rights?
Cost of production was way too high, you can't run a sustainable business like that...
Venturi Life: And you trust Bloomberg as a credible source???
Let's do some math for ND.
Avg cost of a well 10-12 million
Avg production 6 months 2500 bbls/day
Oil 40 per/bbl
40x2500 is 100,000 per/day
180x100,000 is 18 million
Take out 3 million for mineral right and you are left with 15 million
3 to 5 million first six months
Now take 60% lose after 6 months for the rest of the year its like 5 million now take that by 120 new wells and you are close to a billion in profits for that year.
Tax payers are.. Still drained...
We need to stop paying tax because it's theft
@@obviouslytwo4u very difficult to do and will not survive in a court
@@scottyhaines4226 they cannot summons everyone.
Besides a court summons is just an invitation and look closely they are contacting your legal entity, so just send your birth certificate to court.
Time will come, water will be more expensive than oil.
Already is in venezuala
Na I don't think that will happen. Desalination technology will ensure there is enough drinking water
And sooner than later. Yet rising water levels (oceans) and flooding are going to explode. Ironic.
@@askeladd60 Which is typically powered by fossil fuels.
So the moral of the story... we start gaining energy independence, we can have cheaper energy costs across the board which would make everyone's life better, but ultimately that's "bad" because investors need to maximize THEIR profits on any endeavor.
also pollute the environment nice
The oil and gas business has been a boom and bust thing since it started. Always will be.
Nuclear Energy > Fossil Energy
Aren't you supposed to make money during a boom?
@@aolson1111 yes and they did
In Canada we still have an entire province blindly throwing money into the oil sands, which is also an incredibly expensive way to produce oil. If oil can reliably stay above $100 then it is certainly viable, but I don't think anyone really thinks that's going to happen any time soon.
How many other provinces are blindly throwing money away at carbon credits?
@@MadnessMotorcycle Not sure how that is related. Also one bad idea doesn't forgive another.
Also in Canada we have one industry generating 10% of the Country's GDP, , that's constantly miss understood by internet pasters that have access to phones ,tablets ,computers etc. Lol! Fortunately they are in charge of nothing more important than deciding where to go for lunch.
imagine if all that money went into renewables
Renewables aren't renewable. The sun only shines when it shines and the wind doesn't always blow. Many don't want the countryside to be covered with solar panels and wind generators. There are many abandoned wind farms already which can't be reduced to recyclable materials.
Timothy Keith nonsense
Timothy Keith many don’t want the countryside to be filled with abandoned oil wells.
Yep, don't mind me. I'm just a nuclear power plant. Totally not the solution to all these problems if you people weren't idiots. Yep, just keep ignoring me.
RENEWABLES ARE HARDER TO MANIPULATE! But I am sure they will still try!!!
You lost money on shale but you won the Trillion you had lost on a war in the Middle East. Best loss ever.
"only when the tide goes out do you discover who has been swimming naked"
And once more the American total lack of selfcontrle and moderation has resulted in a crash, it's not the first and it wont be the last *
But as an investor/speculant one can take advantage of that weakness
Pretty sure this most of the world
Stefan Laluna: You have just described capitalism. Fracking unlocked vast resources of oil/natural gas. People will exploit that - as they should! But that involves risk. Opec, led by Saudi Arabia, lowered prices to try and destroy the American fracking industry. But risk is what took us to the moon!!!
US became the biggest producer of oil in the world thanks to fracking
Whatever thidworld she tole you hail from doesn't even come close
Mentions the environmental concerns as an afterthought at the end. ‘Merica!
We need high speed trains, not autos. In 2016, Trump was elected and that was a rough time for the USA. I hope he is defeated in the 2020 election
More like M'Earth. No one not willing to decivilize will stop drilling any time soon.
Burning the fossil fuel itself is by far the greater environmental risk than the extraction method.
But I get why some would want to ban fracking. If you want to ban cars one way to end around it would be to set a crippling speed limits of say 25mph.
Javier Porrata great point
@@granskare i hope so as well Trump is such a joke of a precedent, the one thing he kinda did well was making the Chinese uncomfortable,.. and thats it,.. he cant handle the cod, he is doing sht about the climate change,... he doesnt even care about the people, the workers,.. its just sad how he fck the country in just 4 years
OPEC knows oil is on it's way out. This is why they are keeping the cost of a barrel of oil around $50 a barrel as it cost $50 a barrel to frack oil.
Lol this aged well
@@tanner9956 Hehehe. My thoughts exactly.
@@ronniebaker4549 I’m saying that you where wrong
@@tanner9956 you are always wrong.
@@ronniebaker4549 lol okay bud
Seems like the OKC Thunder's home court is gonna be renamed.
Lmao!
"Competition is for losers"
“Fookin’ wanka!”
Typical, fracking comes in pollutes the water, ruins the environment and now we look back and it was all for nothing.
I highly doubt that was his body in the SUV. I bet he is living it up somewhere nice.
probably!
Him together with Jeffery Epstein... Lol
why? because it was heavily subsidised.
So your saying the industry is losing money because it gets given money by government? That’s like saying your broke because you have a paying job.
Eddie Bibby he’s saying these companies could only afford to exist because of gov’t subsidies. They earn less money than they put in!
@@ziaf999 what government subsidies?
There are no subsidies.
It's more like this, here are some money. You can do whatever you want. It's OK to pay yourself big salary and bonuses. Paying the loan back is optional. And it's ok for you to declare bankruptcy.
No it's because oil prices crashed. You can't run a business bleeding money.
Constant improvements in fracking technology have continously reduced the break even point (oil price) at which fracking is profitable. Many locations are now profitable at $35 per barrel, and some even lower. So I beleive facking will continue in the usa, albeit at a slower pace.
Yet, the oil industry has waited until they double there money 💰.
Proofread Jerry
Not one mention in this economic piece of the health and environmental costs of fracking.
If you care about the environment then do your share and please stop driving and don’t use any electricity.
This series is great! Well presented in combining facts into a well constructed narrative that highlights the major points. I like that the series keeps other relevant world events in context of the main story.
Not counting all the freshwater wells that were polluted and made people homes valueless.
no regard for destabilization of the ground nor the immense pollution and clean up processes and costs ~ also, shareholders sucked dry by huge salaries ~
All of us get stuck with the expense and true cost of this toxic industry. Yay Capitalism??
I mean the irony is that that's exactly the opposite of what capitalism ACTUALLY is. American big business waives the capitalist flag until they come asking for a bailout.
@@AdmiralHipper15 yet this is what it always becomes...... capitalism is a dream, a unicorn, a carrot used to rob the gullible people blind time after time, over and over.
Raymond Spicer The thing is, it really isn’t. While oil demand falls, especially during this pandemic, internet demand continues to rise. And as internet becomes more and more accessible for more and more people, and our lives become further integrated with smart technology, I really can’t see why the demand would ever fall like it has for oil. Furthermore, tech is often much more profitable. When the demand is high, and the cost to produce is low (especially if you’re doing software rather than hardware), then profits can be very high. Note that 3/5 of the wealthiest billionaires in the world made their fortune in the tech industry. 0/5 made it in the oil industry. Jeff Bezos alone has made $24,000,000,000 (24 billion) during the pandemic. Although Google has reported its slowest revenue growth in 5 years due to the pandemic, that revenue was still $41,160,000,000 (41.16 billion). Tech is here to stay. I’m unsure if the same can be said about oil. So the rest of us really don’t get “stuck” with any major expense of tech, because unlike oil, tech is a pretty sustainable industry.
I agree this is an example where capitalism promotes wrong actions, but I don't think capitalism is bad at it's core. What are your thoughts?
@@andrewholz1414 it is a cancer on the world and society....
It never worked as it was envisioned. Not once in 300 years.
It all sounds nice in theory. But it is more trouble then it's worth in practice.
Never did i expexct to get hooked on Bloomber clips, but i really enjoy capital and industrial subjects all of a sudden.
A small thanks from a ADHD guy with Apergers that never got the support to find ways of studying these subjects when a kid and teen. 👍🏻
Meanwhile on r/wallstreetbets:
1. Oil contracts negative, does that mean they'll pay me to take delivery of oil?
2. Can I bury barrels of oil in my yard?
Such a great mini documentary! Just information and no agendas.
A whole video about fracking and not a single scene of any fracking equipment. You showed multiple drilling rigs and pump jacks and even a refinery and compression station. Great reporting.
Very interesting report. Bite size too so easily watchable in full. Well done Bloomberg.
Oil going to $150 per barrel in 2007 was the tsunami that caused the financial crisis. The boom in shale oil was a rush to prevent that from ever happening again by creating a supply glut. Mission accomplished.
"if YoU wAnT TO gEt aROuNd ... YOu nEeD OiL"
Or just solar panels and some sort of electric skate or wagon 👍
Still going to be true for the next 30-50 years...even for the majority of cars. What’s your point here or are you just being a child?
@@Acquiredammunity I actually think there's about a decade left. Maybe two at a stretch. If we're talking "majority". Realistically - Most of the cars on the road today will not be on the road anymore in 10 years. Let alone 20 years. That's just the way things go. Cars do not have that long a useful future life these days - The average age of cars on US roads is already about 12 years old. I see demand for BEVs outpacing demand for ICE-V within this decade. It should not be ignored that BEVs can potentially be a lot cheaper than ICE -V given sufficient economies of scale (technically they are already when considering TCO), and that ICE-V is tied in systematically with gasoline production. An ever more precarious relationship to be in. Conversion will also turn into a huge industry within this decade. Then there's the parts industry. As soon as parts for a specific model become challenging to source that car basically turns into a collectable at best.
@@Acquiredammunity No. Oil will be for race tracks maybe, for fun, but your daily driver will be an EV or a combination of EVs: eCar, eBus, eScooter, eBike, eMotorBike, ePickup, eSemiTruk...etc...
Most vehicles will be electric in
@@Poxenium And they'll fly too. Just kidding. But I'm not kidding when I say your claim is wildly optimistic. That's not the real world works. How about at least 10 years, more likely 20?
Lol corn based ethanol is america's true money pit change my mind.
Yes but e85 is great for boosted applications 🤓
When it still requires an outside energy source to process, it's always gonna lose.
I agree, but I have yet to see literally ANY real proposals for shifting away from American corn/agri-subsidies, in a manner that's actually politically actionable, other than the Democratic's Green New Deal. The voting bloc of farmers dependant on those subsidies is simply too massive to be ignored, vilified, or undone. And calling the Green New Deal politically actionable is, at best, laughable given the current electoral state of America's legislature, nvm it's executive branch. Unfortunately it seems inevitable and unavoidable that 'Murica will only smarten up when it's too late and ya'll quite simply CAN'T maintain traditional agriculture even with increasing subsidies (which is just an ironic form of wealth redistribution from one taxpayer to another that has cows and corn, but w/e).
@@RosscoAW it also runs the side detriment of driving up food prices.
RosscoAW Pretty much every developed nation has huge agricultural subsidies because farmers are and have been a huge voting block.
Or do I have to remind you of the EU’s ‘Cheese Mountains’ and ‘Wine Lakes’ as well as the money dump that the EU common agricultural policy is?
As a former hydraulic fracturing engineer, let me tell you what is going on. NOBODY KNOWS WHAT THE HECK THEY ARE DOING. Everyone is just pumping sand without knowing what they are doing. Some wells produce, a lot do not. The industry decided long ago that they are gonna treat fracing as a factory operation instead of understanding the engineering behind each well. A lot of the people that are overseeing fracing are not even petroleum engineers. That is the industry's hubris for you. Until we don't go back to petroleum engineering nothing is gonna change.
Thank you. Helped with a few final pieces of the puzzle for our Skyway program.
A long time ago Adam Smith voiced concernes that managers would guide investment into places that would maximize the managers take even if it cost the investors their investment. Apparently he was correct.
The petroleum industry since it started in 1840 has been riddled with insider deals, monopoly and variants and corrupt management. Not a place for my investment.
Great video and excellent production quality!
I work for a frac company and for as long as I worked here the company has made a quarter of a billion each quarter if not more
Very informative video. Though I would think the fracking industry would be surviving better and indefinitely at a $50 or $60/barrel oil price.
Thanks!
9:53 US investors have invested 340 billion dollars over the past decade. Fracking has generated trillions of dollars in revenue for these investors over the same period and kept the US economy soaring long after it was supposed to be in the double-dip of the great recession. Yes, fracking investors lost money when oil crashed but they made so much more while it was up. Fracking was never thought to last forever but the boom days are far from over. What you need to prove is that fracking causes more environmental damage than traditional oil drilling and transport from Suadi Arabia and Russia. Don't forget to add the cost of the endless wars in the middle that the US is currently stuck in because of our reliance on foreign oil. I am going to buy a Tesla and put solar panels on my roof. Much less risky of an investment.
Fracking is just delaying the inevitable.
Delay is important when you don’t have a viable alternative yet. And renewables are not there yet. Arguably getting close but we do need more time or say hello to global starvation. Without oil and gas we could not grow enough food to feed the worlds current population. Just one of the many effects we have to plan for weening off fossil fuels. (Most fertilizer is produced from nitrogen fixation to hydrogen from natural gas)
@@rayrocha4189 butt, but....... my college professor told me all oil is bad....... Oh well I'll eat my toe nails.
yeah a delay of up to 200 years texas has trillions of Barrels of OIL equivalent
@@rayrocha4189 the problem is that we could’ve solved this by know. A tiny push in one direction for a long time can do massive change, but by putting it off and delaying it, we are forced to go to drastic measures now, because people weren’t willing to sacrifice a tiny amount of convenience even it means a massive amount of inconvenience in future.
@Ggrg There are oil reserves for at least 100 to 150 years.
The Sun will burn the Earth to a crisp in 5 billion years, >. Should we start preparing now ?
'people made fortunes' sums it up. fracking is a business - some win, some lose.
Fracking is an example of having a technology but not necessarily needing to use it. Fracking was set for the far future where all proven petrol sources were dried out. No one thought it would be so vast and so quick, making the US and Canada self-sufficient, albeit at a cost. The on again-off again nature of US and Canadian exploration, caused by the market twists and turns, is immensely hard on those states and workers...
It has been a rollercoaster ride for the fracking shale oil industry, and with the future this uncertain, who knows if it will recover?
@Joseph Henderson Oil extraction is designed with minimal environmental damage. It is when there's a leak or spill during extraction is there is a problem above the usual fossil fuel burning suspects.
Get help really
It's your future your destroy ING renewable s catch e up time oops don't think so
@Joseph Henderson minimal does NOT mean 0 (zero).
@Joseph Henderson also, anyone with a cursory understanding of Oklahoma geology would know that earthquakes are not rare.
Her inclusion of low interest rates as a reason for poor business restraint and increased risk profiles, is right on. In this case, lower interest rates causes lower prices and thus fueled disinflation.
Now imagine all that money invested in solar, it would still be producing today
now image if you had an actual way to store it
@@scottwilliams3665 Imagine if innovative could solve this problem. I guess if we don’t have a immediate solution to every problem we just abandon it
@@scottwilliams3665 Price of oil reaches $-35 per barrel? Seems like storing oil and natural gas has a large cost as well. Maybe we should just leave the fossil fuels in the ground for use in the future. We've stolen so much from our children and grandchildren already, might as well leave them a little oil and gas in the ground.
@@MichaelGustavsonArchitect could you maybe make a coherent argument please ? Oil is 60$ -35$ was a trade fluke. I really wish you would look at every part of the electronic body and see that your still just as bad if not worse . Look up lithium mining and tell me that strip mining a miles of land is worse than a 13" hole in the ground. Before you go start your liberal BS I own pv cells and batteries for my home and I like green energys idea . But the green portion is just that right now an idea there has been a big enough technology jump for it to be viable with out significant incentives and grants
@@vladiiidracula235 You mean like trying to make coal cleaner?
The negative oil price phase was so idiotic. We basically used energy to pump oil out and have no place to store it. Leaving it in the ground maybe?
It's really weird why they don't stop their production in times like these.
New companies took a lot of advantage over the bankruptcy of many others because of this
The Beverly Hillbillies clip made me laugh.
Who would have ever thought that America was like a rat on a treadmill?
money is either shared with shareholder or with employees and contractors. for some its a loss, for some its a big a loss.
The more oil you find and the cheaper it gets the more of it gets used. In fact the more of it that gets wasted in conspicuous consumption. Which also means the sooner you run out of something that you actually have plenty of to start out with.
The major point shouldn't be lost, that we have energy independence with the new fracking tech, and no amount of money can make up for that. Costing "Money" is many times simply employing people. Think of the lives lost fighting for oil. I was a soldier during the first Gulf war.
@@garywright8137 We have and will continue to have energy independence since the tech was invented, no going back. So no excuse to invade countries. Inventor of fracking egineer Nick Steinsberger is responsible for changing geopolitical fate of the globe.
@@garywright8137 Unfortunately I agree. We are helping to engineer Valenzuela's downfall although the leadership there is also doing it on their own. Valenzuela is a sticky mess. I spoke with Valenzuelan refugees in Peru recently; there is no excuse for how their govt runs things. It seems the next step for Valenzuela may be partnering with China and we dont want that. Sometimes foreign policy is a haze more than clear.
@@garywright8137 Yes we have the opportunity to stear the boat of foreign policy away from its course now there is US energy independence due to fracking. The problem is the boat's course was set because we had no tech to access the resources, so we invade and influence. I dont have time to blame those who influence, I just have time to make a case that it is best for everyone to steer a cleaner less volatile path. That engineer in Texas should get a medal.
I like these documentaries, traditional news networks need to get back into this business instead of fighting tech
Investigate first before you invest, nobody force you to invest, they just lure you.
Everything would have worked if the other countries had not fracked the US on price.
Expecting high prices despite high supply? Hmm... that's wishful thinking (even theoretically).
The Energy business is doing just fine, it's just shifting away from fossil fuels. If you want to make money look for companies that compete with oil and have cheeper energy sources.
@
Christopher Perisho And what is cheaper than petroleum or natural gas? The current cost problems with fracking is that the Saudis dropped their price on crude oil - which they won't do forever as the entire economy is based on pumping oil - its still oil from the ground. For now, the cheaper energy is not from fracking, but its still oil. And fracking has made abundant natural gas cheaper than it ever was.
Great video and reporting, thanks
Has any one factored in the legacy costs of the pollution associated with fracking? Water sources polluted for ever seemingly, seismic structures made unstable,a short term win for a very long term gain.
Governments keep proving to us how inefficient and incompetent they are.
Um this is the private sector
@@amanasd26 Fracking wouldn't be economically possible at all without the massive subsidies received by hydrocarbon projects generally and fracking in particular. Straight up redistribution from your taxes to known, unprofitable corporate endeavours. If I'm going to participate in wealth redistribution I'd much prefer my taxpaid subsidy monies are at least directed towards a domestic corporation that /Will Still Exist In 30 Years/.
All those chemicals, pumped into the underground, will never be a problem. 🙈🙉🙊
Yea, I don’t see any way unregulated pumping of uncleanable chemicals near our ground water can cause any problems.
This video is about frac but all they showed was drilling 😂
Per shareholder return what counts. Investor protection, think about simply oil isn't sustainable but its significance comes from higher prices, replace taxation with tariffs offer tariffs to subsidise UK oil firms while offering lower prices to UK consumers.
Fracking is unsafe no fracked well has not been a invromental disaster !
Learn how to punctuate and spell before you comment publicly on a diverse topic.
Say that to the thousands of operating wells that haven't hurt anything.
Could at least get some shots of a frac instead of a bunch of drilling.
Hilarious. I’ve been a frac mechanic for almost 10 years and we never quit fracing and Chesapeake is fracing more than ever and making enormous profits from their wells.
I am very glad so many people lost so much money in this venture. So very glad
How to win the investing game over the past decade: Short a basket of shale stocks and go long Tesla.
In retrospect it sounds like the single most obvious trade you could make, but some people somehow did the opposite.
Totally agree!
Don't discount the importance of oil to US national security...
Tesla is a massive bubble
Yeah fantastic except for ruining your water table filling it with gas we have got Rivers over here that Catch Fire .. can't wait to get rid of the combustion engine
There are many uses for oil besides burning it in internal combustion engines. The water table problem was a risk they never should have been allowed to take though.
bloomberg has really great vids, super informative, not filled with don lemons and sean hannitys
Only $340 Billion hole in Wall Street pocket? In 2014, U.S. spent $333 Billion to import oil!
The math only worked at $100 per barrel.
$60 would turn profits for almost all the companies.
"Endless Money Pit" - Scotty 2020
There are huge oil reserves in the US.
The March oil crash was fun time. So much market volatility, 5% swings each day.
This was big time so awesome!!! Too bad I had nothing to buy when the barrel went down to $10... that would profit 400% selling in 1 month. The lower it is the more profitable it is when the price rises. If the coronavirus continues in 2021 there will be another crash on prices on the winter
It was great how they destroyed town after town's water supply. Poison poison poison. Great work america!!!!
It will become important again if middle east supply gets disrupted critically
SO THE US WILL START A WAR IN THE MIDDLE EAST TO CRIPPLE SUPPLY AND DRIVE UP THE PRICE OF OIL TO MAKE US FRACKING COST-EFFECTIVE? MABEY? THE SPACE-ALIENS ARE SHAKING THEIR HEADS AGAIN!!!
Doesn't matter the method, hippies will always get angry as long as your disturbing the dinosaur juice.
yea but isn't a clean less polluted world better. Teslas future is a lot better then bp.
Fracking can be only feasible if barrel of oil is 100$ and up
Meanwhile oil will hit $80 in dec 2021
Oil executives need to be fined for taking money that belongs to investors.
Never mind the people that live in the area or work for them.
Yea it's those poor investors that are getting cheated.
Investing into a company comes with risks. Don't be mad a executives if one of those risks comes to pass.
If the exploration company used the correct amount of cement when running casing with returns to surface and waits an actual 48 hours for the cement to dry before running pipe back in to continue the horizontal portion, fracking would never cause environmental damage. The frac takes the path of least resistance.
Fracking causes irreversible pollution. It massively contaminates high volumes of water that can never be used again.
Shale is a muuuuch cheaper source now that they can drill sideways. These fine "journalists" conveniently left that out and only discussed old tech and old investment.
You're just holding worthless company stocks that used to yield 12%. Keep holding them as they'll soon be bankrupt. 😂
@@moderatesunited No, I'm just sharing pertinent information that clearly didn't fit your delicate wittle worldview...
@@jbtechcon7434 Shale producers were able to lower their production costs significantly those last 2 years, that's true. But now that WTI barely sells at 40$, they are breaking even at best. The journalists probably left that (conveniently or not) because it doesn't change the whole story. Shale is toast.
@@jbtechcon7434 they did say that if you watched the video. They said horizontal drilling. Which translates to "drilling sideways". horizontal = sideways
@@moderatesunited tracking sounds like the perfect strategic reserve, other than the infrastructure to move quickly, it is totally out of sight and out of way ! Oil prices are always highest when the reserves are low !
To bad the US currency is pegged to the petrol dollar. Once oilfield crashes so will America's ponzi currency. It will be a bumpy ride.
It has already crahsed in the past and nothing happened
@@nathanielquiroz6532 That's because it's the world's reserved currency. That's why bitcoin emerged and China's trying to create an alternative. Apart from the fact that the US weaponized it, their constant deregulation of their financial institutions shows their instability that affected everyone in 2008.
From the shale industry can we draw inferences about exhaustion if oil from current wells?
The cost of extraction far exceeds market value of shale and oil products. The cost to extract is approximate $2.78 in 1980 while contribution to GNP equaled $1.22; In 1990 extraction = 3.05 while contribution to GNP $1.03 .... CHK can be held up as the standard bearer for all fracking/shale biz and huge WS losses.