Quote:
Originally Posted by bobthebilda
Theres alot of investors in the American shale business that are hurting big time at the moment. You only have to look at some of the companies on the Australian Market whos shares have more than halved. The american shale business wasnt even making money when oil was at $100 a barrel (they were being funded by alot of debt), thus imagine how good they are going now. In addition, the payoffs for shale wells comes short and sweet ( these wells are productive at start, but die rather quickly compared to your tradional oil well). Theres a good chance that over 75% plus, of US production is losing money at the moment, and once you shutdown a shale oil well, its a huge cost to get it running again. Any sane investor wont be returning to this situation for a long time. Smart investors out there would be buying 44 gallon drums, and throwing a bit of petrol in there each week. Come latevthis year, or early next year, petrol will be staying above $1.60 a litre.
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I see. Guess we will have to wait and see what happens then. Fuel in Darwin is 45% more expensive then Vic anyway. So we are screwed.
Zipping - peak oil can't be a false prophecy. If we keep using it, it certainly doesn't compose at the rate we are using it. It may just take a bit longer to get to that point though. Making an accurate prediction as to when that is would be a hell of a trick though.