Fusion: Many believe the US shale revolution is going to solve our energy problems? Is it over-hyped ?
Jim Rogers: Yes, I believe it is. Regarding natural gas, the
fundamentals on the ground are not nearly as good as the hype. The
number of rigs on the ground has gone down 75% the last couple of years,
as the wells are very short-lived, and it takes an enormous amount of
money to keep them up. A number of companies have had to lower estimates
of their reserves. As for oil shale, typical wells deplete at 38
percent the first year. Thus you need a lot of drilling, money, and a
high price to keep up production rates. All you have to do is go out in
the oil patch. I believe the investment world will be disappointed with
the notion that supply is so great that oil will collapse. - Jim Rogers interview with Fusion MarketSite Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.
