Boomtown

A Dark Horizon | Chapter 9

10 snips
Feb 4, 2020
Christian chats with Bethany McLean, an acclaimed business journalist known for her insights on the Enron collapse and the oil industry's finances. They dive into the paradox of fracking, revealing how skyrocketing production doesn't equate to profits. McLean discusses the fracking industry's financial instability despite rising oil prices and explores the 2015 decision to lift the U.S. crude oil export ban. The conversation also shifts to energy independence versus dominance, emphasizing the Permian Basin's key role amidst investor skepticism.
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INSIGHT

Fracking's High-Cost Reality

  • Fracking has transformed energy but the industry largely operates at a loss due to high capital costs.
  • Cheap debt post-2008 enabled massive investment that fueled the shale revolution's growth.
ANECDOTE

Aubrey McClendon's Reckless Faith

  • Aubrey McClendon passionately invested his own money alongside others, showing reckless but heartfelt commitment.
  • Despite repeated financial devastation, he steadfastly rebuilt his oil ventures driven by belief, not cynicism.
INSIGHT

Fracking Profit Promises Fail

  • The narrative that fracking will soon be profitable persists, but historical data disproves this optimism.
  • Even high oil prices failed to turn profits due to rising costs during busy drilling periods.
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