Monday, November 19, 2012

Shale Gas Will be the Next Bubble to Pop - An Interview with Arthur Berman

The world won't run out of oil; we will run out of cheap--and easy-to-extract oil.  The natural gas required to extract oil can get prohibitive.  Technological breakthroughs will produce more efficient extraction (e.g., horizontal drilling), and cause the depletion rate of these resources is occur much faster than conventional oil.  In other words, the US won't be energy independent any time soon, despite campaign promises to the contrary.

Shortages will occur around the world, as the war for capturing natural resources intensifies, led by China.  The economies of importers such as Japan and most of the European zone will be crushed due to rising prices.

And of course, if war breaks out in the middle east, then all bets are off.

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