Yes… the Shale Energy Industry is a Ponzi Scheme that would make Bernie Madoff jealous. While Bernie defrauded investors by a sum of $65 billion, that pales in comparison to the $250+ billion by the Shale Energy companies.
The Shale Energy Industry and Wall Street have come up with an ingenious plan to continue producing unprofitable oil.
HERE IT IS… they use SNAKE OIL type salesmen tactics by getting unsophisticated investors to fork over $billions a year, but only have to pay a small percentage as an annual INTEREST EXPENSE. These companies and Wall Street realize investors will never see the return of their capital, but what the HELL, this sort of financial crap has been going on forever.
So, the Shale Energy Ponzi Scheme continues until oil prices really fall and it makes it difficult for these shale companies to service the interest on their debt. The only shale play that is seeing real growth is the Permian.
But, like with all gold rushes, there’s a huge spike and then rapid decline. So, make sure if you are invested in these PONZI SCHEMES that you know when to sell before the SHYTE hits the fan.