Watch nordesmic's video most of that shale energy is uncommercial. When the capital dries up for new wells the rate of production will decline. Here is a slide from the video for the Eagle Ford shale. Back in 2013 this guy calculated that they need to drill 2000 wells/year just to keep their production flat and replace the annual decline rate of 35%. No one is going to keep funding this rate of drilling when the debt market finally figures out that these companies are screwed and not making any money. With those decline rates and a big freeze in funding, production levels across the industry will fall rapidly. I don't think its a matter of if but when. Six to 12 months is my guess before people will start talking the price of oil up again.
Eshmun
DLS Price at posting:
51.0¢ Sentiment: Buy Disclosure: Held
