Shale Oil and Gas : All Hype

Q: What are your thoughts on developments in recent years that have unlocked shale oil and gas? Some have said the U.S. energy boom is the most important development in political economy in decades.

Jim Rogers: I would urge people to go out and see what’s happening in the field. Yes, it was all very exciting in the beginning. But now we’re finding out that those wells are very short-life wells. Production dropped by 40 to 60 percent in the first year, and the demand for rigs to drill in the shale fields is down 75 percent in the last couple of years. The demand for pumps is down 50 percent.
So it’s not as much fun as we’d hope it would be. In some countries such as Poland, people have given up their shale leases, because they’ve realized it’s just not so simple. I read all the hype, but again I’d urge people to go into the fields and see what’s actually happened, rather than reading what journalists hype.
Natural-gas prices have quadrupled since the bottom. They’re not quadrupling because this is the most important thing in several decades.- in IBTimes



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%.

Jim Rogers : Shale Oil not enough to solve Americas Debt Problems

Jim Rogers : We had a bit of surge (in energy production) recently , but no matter how big that surge is Tony even in the most optimistic proposals it is not enough to solve the problems because the debt keeps going through the roof , and by the way there are questions being raised about whether this shale oil and shale gas would be as productive as we all hope , but that's the subject of another program , but even if it is as we hope for it won't be anough to solve our problems ...- in a recent interview with radio station 1320 WILS AM
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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%.

US Shale Gas & Shale Oil overhyped

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 per cent 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 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%.