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Shale Boom, Shale Bust: The Myth of Saudi America

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At a glance

Condition
New
Dimensions
6 x 0.28 x 9 in
Weight
6.2 oz
Publisher
Dan Dicker
Publication date
June 7, 2015
Language
English
Print length
122 pages

Description

Just about everyone has heard something about the ‘revolution’ in shale oil. Hydraulic fracturing (fracking) of rock formations unique to the United States offers the promise of cheap and abundant energy, terrific economic growth and jobs – lots of jobs. But in 2014, something went terribly wrong with this rosy scenario of “Saudi America”: A unexpected collapse in the price of oil that’s bankrupting the oil patch, destroying jobs and threatening any plans of a renewable energy future. What happened? Why has this miracle ‘revolution’ generated so many losers and so few winners? Why isn’t the United States any closer to energy independence than it was before oil from shale was even imagined? What can be done to put the markets and the industry right so that shale can deliver on even some of what’s been promised? Read more

Specs 8

Publisher Dan Dicker
Publication date June 7, 2015
Language English
Print length 122 pages
ISBN-10 0996489703
ISBN-13 06
Item Weight 6.2 ounces
Dimensions 6 x 0.28 x 9 inches

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Top Amazon Reviews


Outstanding read for anyone wanting to understand why the oil and gas industry is in the dumpster for the foreseeable future.
Format: Kindle
A very clear and insightful explanation of the unconventional oil and gas debacle that has taken over the oil and gas industry for the last 15 years. I worked as a geoscientist and technical manager for the last 37 years and have been totally gob smacked by the insane amounts of capital investment dollars that have been pored into exploration and production for hydrocarbons trapped in impermeable shales. The majority of these plays are not economic under any realistic commodity price scenario, meaning $100/BO, and once on this production treadmill, caused by continuous drilling, companies will not admit that their cash flows will never exceed their annual capital investments. I worked for 20 years for one the companies mentioned and I was amazed that executive management showed cognitive behaviors that became ultimately disastrous to this entity. Great read, just wish that the Oil Executives would take a look and wake up!! ... show more
Reviewed in the United States on August 11, 2017 by Crafty gal

Four Stars
Format: Kindle
Easy to read. Most informative on history and future of the shale industry. Well worth the time.
Reviewed in the United States on August 17, 2015 by David E Roberts

The book is a good read for both the novice and advanced investors in ...
Format: Kindle
The book is a good read for both the novice and advanced investors in oil companies. It reviews how oil is priced and the importance of the range of break even points for companies within the oil industry. The author doesn't hide the fact that he didn't see oil falling 50% in 2014 and discusses the reasons for the commodity collapse in detail. Dan gives us his three phases of the shale bust to look for and what will potentially drive the next oil boom and when it may occur. At the end of the book Dan also gives us some of his best long term ideas of where to invest in oil related stocks and why. Overall the book was easy to read and it provides good insight to the current landscape of US fracking and the overall oil markets. ... show more
Reviewed in the United States on July 26, 2015 by Charles R Wagner

Good oil trading book
Format: Kindle
Boom offers some good insights into the mechanics of oil financing and trading. However, it lacks original ideas and content.
Reviewed in the United States on October 4, 2015 by Darrin D. Madriz

To get an insight on shale story, it's must read.
Format: Kindle
As oil price goes down to $30 level, I thought the opportunity came. But I realized it's bit complicated than I thought. The author emphasized the dynamics oil than than merely pointing out the fundamental. To keep oil price afloat, according to him, the market needs the marketing force catering to the institutions which have no physical relation with oil, in that case, Investment Bank. As we know, the investment bank shut down their oil prop trading businesses because of the strict capital requirement. That's why, he said, the price much deviates from the fundamental. But that does not mean the fundamental of shale companies is OK, but quite opposite. The shale players are burdened with high break-even price, prone not just to the market price swing, but to Saudi's ruthless attack. And the vultures - mega oil companies, PE - are waiting for the weakest antelope to die. Meanwhile, in the last chapter, he offered the analytic frame to pick oil related stocks to play the next oil boom. Let me spare the specifics here, I gonna say, it's worth to read. Although I don't know why the renewable energy comes out in the later chapter - that's why I gave 4, not 5 -, I don't think it tarnishes the whole point of the book. So if you want dip into your toe in oil play, please, get into this book. ... show more
Reviewed in the United States on February 7, 2016 by Kim

The Truth Exposed
Format: Kindle
Dan Dicker is not only humble in his book of realizing how he was wrong and missed the call for the downturn but most importantly his explanations and insights of the oil industry are incredible. Many mainstream media outlets will have you believe what they want but at the end of the day economics rule. Shale is nothing short of a Ponzi scheme and Dan Dicker doesn't stand alone with this assessment. The myth of USA energy independence is just that a myth. The numbers speak for themselves. Most shale companies were burning through cash with $100 oil much less $45. The insights into the Dodd Frank Act and The Volker Rule were very insightful and relevant. Anyone believing that oil prices will stay low for long will be sorely mistaken. The simple reason is that Shale requires endless CAPEX to try and make up for its rapid declining production curve vs. conventional oil extraction methods. The similarity of this and the housing crisis is very similar in different ways. Most bubbles are similar in different ways. The music has stopped and many are left scrambling. This will only mean one thing in the future as shale production rapidly declines with less investment (due to the exposure of this less than profitable extraction of oil) much higher oil prices. ... show more
Reviewed in the United States on August 4, 2015 by Kress

Understand the Shale Oil Boom
Format: Kindle
The Endless Bid was an excellent book so I was happy that Mr. Dicker wrote another book on the oil shale boom. I wasn't disappointed. This is the best information I've read about the shale boom and bust, including articles in periodicals. Mr. Dicker has a great way with words and makes this potentially dry subject very interesting. A lot of facts and charts are presented and the conclusions drawn from them are very logical. The call for action regarding an energy policy is also very welcome, but it's easy to see why that will never happen in this country considering the players in the oil industry. The book is just long enough to get the points across but it leave you hungry for more. Highly recommended. ... show more
Reviewed in the United States on June 16, 2015 by Yard Limit

Four Stars
Format: Kindle
Great read if unfamiliar with oil shale fracturing and associated hedging for profitability vs world market.
Reviewed in the United States on February 17, 2016 by William H. Pierre, Jr.
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