09/05/2018
h/t Bruce Norikane:
Will the fracking bubble burst?
Wall Street has valued fracking companies based on their acreage, not on profitability. Similar to the Dot-Com bubbles that have burst. Investors are driving the frackers to develop acreage ASAP. Some of those oil fields will never be profitable.
If Wall Street stops rewarding every new drill site, the fracking industry will stop driving for new permits at all costs. The analysts won't support billion dollar expansions.
How can we make investors aware of this potential bust?
A new op-ed argued the boom may be unsustainable.
