Bottom Line: North Dakota’s impressive ecmioonc success clearly illustrates some of the benefits of domestic energy production: more jobs, record ecmioonc growth, huge gains in personal income, and even more tax revenues. There’s no reason that the ecmioonc success of North Dakota can’t be duplicated elsewhere, if we would only open up more U.S. land and off-shore areas to domestic energy exploration and drilling. The same argument could have been made for the dot.com bubble. Employment was booming and tax receipts were exploding as massive amounts of capital were invested in ventures that would make a great deal of profits. The problem was that most of the ventures did not make a profit and the entire boom turned out to be a capital destroying bubble that made the nation ultimately poorer even as it enriched those speculators who were early to the party and decided to cash out when things got too heated. The current shale boom is another version of the dot.com bubble. Yes, some wells are very profitable and a good investment. But the average well will lose money and there is no way for investors to make money from producing shale gas. The reason is obvious; the depletion rates are too high and the UARs are much lower than the assumptions being made by the producers. We have already seen the NYT and other outlets blow the whistle on the scam as they point to insider e-mails that are making exactly the same point that some of us have been bringing up over the past few years. And note that all of the ‘good news’ for the ND economy did not translate into good news for the producing companies in the region. While the drillers got rich by seeing their rates bid up by the producers, the producers were losing money as the collapsing real economy caused demand to fall below supply. Sorry Mark but the conference calls and the profit reports are indicating an obvious bubble. If the producers had to use UARs that reflected the production data and had to justify their reserve estimates you would see a rapid crash that will resemble what you saw in the housing sector. But the SEC does not seem to care about the truth and wants to prevent a collapse in the sector at least until the next election is over. But somehow, I would not continue the illusion to last that long. Eventually, even trusting souls like you will see reality for what it is.
Bottom Line: North Dakota’s impressive ecmioonc success clearly illustrates some of the benefits of domestic energy production: more jobs, record ecmioonc growth, huge gains in personal income, and even more tax revenues. There’s no reason that the ecmioonc success of North Dakota can’t be duplicated elsewhere, if we would only open up more U.S. land and off-shore areas to domestic energy exploration and drilling. The same argument could have been made for the dot.com bubble. Employment was booming and tax receipts were exploding as massive amounts of capital were invested in ventures that would make a great deal of profits. The problem was that most of the ventures did not make a profit and the entire boom turned out to be a capital destroying bubble that made the nation ultimately poorer even as it enriched those speculators who were early to the party and decided to cash out when things got too heated. The current shale boom is another version of the dot.com bubble. Yes, some wells are very profitable and a good investment. But the average well will lose money and there is no way for investors to make money from producing shale gas. The reason is obvious; the depletion rates are too high and the UARs are much lower than the assumptions being made by the producers. We have already seen the NYT and other outlets blow the whistle on the scam as they point to insider e-mails that are making exactly the same point that some of us have been bringing up over the past few years. And note that all of the ‘good news’ for the ND economy did not translate into good news for the producing companies in the region. While the drillers got rich by seeing their rates bid up by the producers, the producers were losing money as the collapsing real economy caused demand to fall below supply. Sorry Mark but the conference calls and the profit reports are indicating an obvious bubble. If the producers had to use UARs that reflected the production data and had to justify their reserve estimates you would see a rapid crash that will resemble what you saw in the housing sector. But the SEC does not seem to care about the truth and wants to prevent a collapse in the sector at least until the next election is over. But somehow, I would not continue the illusion to last that long. Eventually, even trusting souls like you will see reality for what it is.
this is a test