The New York Times has a fantastic story today about the overinflated economic projections of shale gas drillers.
…“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” an analyst from IHS Drilling Data, an energy research company, wrote in an e-mail on Aug. 28, 2009.
It’s well worth the time to read the whole article. Then keep an eye on the Marcellus Shale Coalition’s spin machine as it kicks into hyperdrive.