Monday, November 3, 2014

Robertson of 700 club tells their listeners invest in oil stocks, it's biblical

A few days ago I found an article about the life of fracked oil and gas wells.  Thousands of the 1.1 million active wells in the US are fracked, leading to the industry boasting of energy independence.  Don't get your hopes up that fossil fuel can do that.  Fracked wells have a terrible habit of dying young.  Within 2 years the (national) average well production falls about 50%, within another couple of years the output becomes uneconomical which means re-frack or cap.  At this rate the industry needs to replace over 1/4 the fracked wells a year to maintain current output.  The payback may fall short over time at this rate if oil prices fall further, and natural gas prices don't rise faster.  Seeing your investment wiped out due to charlatans advice and greed, well that's biblical.
Your fathers oil wells produced for at least 5 years, most lasted decades with a few approaching a century.  Why the change?  In dad's day, they were going after the easy to recover oil and gas, now we are into the expensive hard to get at era.  We need to leave it lay, nature put it where it wouldn't hurt us, and gave us wind and sunshine.  Next time you see an add about energy independence, watch to see how much they talk about renewables, more efficient lighting and transport, energy stingy standards for homes and appliances, energy efficient industrial equipment, - these things will get us to energy independence quicker than any other method.

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