Meanwhile, The New York Times has previously leaked emails which included this ominous warning from a respected analyst: “The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work.”
All this investment is creating copious wells, at twice the price of ordinary ones, and because they are, first production is taking place at about the same time, the initial figures look great. This fuels further blind equity but then, as mentioned earlier, the output drops extremely fast.
Just like the housing bubble of the early years of this century, the fashion for fracking is also heading towards a cliff. Once the attractive spots have been milked, production will slump and many wells will not even take off at all, following the example of Poland where drilling dozens of wells has led to nothing.
It’s obvious that a few years from now, fracking will be seen as this period’s equivalent of the tulip and dot-com convulsions.