This article discusses how fracking is not financially secure investment, without even considering the implications for global warming, the environment, and the health of residents. Despite rising oil prices, the red ink continues to flow for fracking companies.
To outward appearances, the US oil and gas industry is in the midst of a decade-long boom. Hydraulic fracturing, or “fracking,” has unleashed a torrent of oil and gas production, lifting output to all-time highs and fueling dreams of American energy dominance on the global stage.
Yet in financial terms, America’s fracking boom has been a world-class bust. Despite significant technological advances—and an influx of hundreds of billions of dollars of capital—fracking companies have spent far more on drilling than they’ve made selling oil and gas.
A research brief published jointly today by Sightline and the Institute for Energy Economics and Financial Analysis tracks cash flows and other financial metrics for 33 publicly traded oil and gas fracking companies at the epicenter of the fracking boom.