william the wie
Gold Member
- Nov 18, 2009
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That's the minimum guesstimate from KMI and PAA is slightly more optimistic but that tends to be discounted as a reflection of its less happy financial state v. KMI. This has many consequences:
Two years of selling off existing inventories assumes that fracking will not be getting cheaper. Available data from E&P companies indicates that this assumption is false. Current trendlines Indicate that fracking companies will get to $20-30/bbl either through technological breakthrough or elimination of leverage through bankruptcy or perhaps a bit of both.
Alternative energy sources will increase in price relative to conventional energy.
The next presidency will fail no matter who is elected.
But the big question is when will it be a good idea to again invest in pipelines and refineries, any one got a clue on that one?
Two years of selling off existing inventories assumes that fracking will not be getting cheaper. Available data from E&P companies indicates that this assumption is false. Current trendlines Indicate that fracking companies will get to $20-30/bbl either through technological breakthrough or elimination of leverage through bankruptcy or perhaps a bit of both.
Alternative energy sources will increase in price relative to conventional energy.
The next presidency will fail no matter who is elected.
But the big question is when will it be a good idea to again invest in pipelines and refineries, any one got a clue on that one?
