Could natural gas have its own "JP Morgue Cartel" for entirely different reasons?
In a shocking article released by the NY Times, internal emails obtained from numerous natural gas firms indicate that the entire natty shale glut is a "giant ponzi scheme".
One analyst even called the shale story "possibly illegal".
For those wishing to diversify into other physical assets, natural gas in our opinion holds the greatest future potential for gain on investment (outside of silver of course).
Excepts from the NY Times piece "Insiders Sound Alarm Amid a Natural Gas Rush"
“In these shale gas plays no well is really economic right now,” the geologist said in a previous e-mail to the same official on March 16. “They are all losing a little money or only making a little bit of money.”
“Our engineers here project these wells out to 20-30 years of production and in my mind that has yet to be proven as viable,” wrote a geologist at Chesapeake in a March 17 e-mail to a federal energy analyst. “In fact I’m quite skeptical of it myself when you see the % decline in the first year of production.”
“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” an analyst from IHS Drilling Data, an energy research company
But if natural gas ultimately proves more expensive to extract from the ground than has been predicted, landowners, investors and lenders could see their investments falter, while consumers will pay a price in higher electricity and home heating bills.
Click here for entire NY Times article:
