"Remember, those are very short-lived wells," "Those wells run down, the production runs down very quickly with those wells. There is a possibility of running up a big debt. So, do not count on shale coming on strong if prices stay weak."
Jim Rogers said in an interview with India's Economic Times .
Some of this is artificial. They slightly seem to be trying to drive down prices because of shale competition. Then, of course, America may be making friends with the Iranians, which means they will be bringing more oil into the markets.
So, the oil situation is very artificial at the moment. It looks like a lot of people are dumping. This is artificial. I would not be dumping oil myself though.
I have no idea where oil prices are headed. The shale boom will not continue very strongly. Prices will come down because that is high-cost oil. Also remember, those are very short-lived wells. Those wells run down, the production runs down very quickly with those wells. There is a possibility of running up a big debt. So, do not count on shale coming on strong if prices stay weak.
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%.
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