The Fracking Shakeout: Coming This Summer
By Christian A. DeHaemer | Thursday, May 29th, 2014
We’ve known for a while now that natural gas fracking companies weren’t making a lot of money.
The low cost of natural gas and the high supply meant margins were tight or nonexistent. That’s why experts like Keith Kohl have been digging into balance sheets and picking the winners from the losers.
In my trading service Crisis and Opportunity, I haven’t been buying fracking companies — rather, I’ve been buying those companies that benefit from the fracking boom. For example, there are firms selling fracking sand (one company is up more than 350%) that are growing 30% a year.
One company that makes railcars for shipping oil and gas just got a 7,000-car order. And others that provide storage tanks and port facilities have doubled in the past year.
It is no surprise to us here at Energy and Capital that a fracking shakeout is coming. We’ve been ahead of the fracking curve for about ten years now.
But yesterday, Bloomberg stated the obvious in an article entitled, “Shakeout Threatens Shale Patch as Frackers Go for Broke.”
TAP – Fracking’s a short term play which long term destroys all underground water, drains away all water reserves and makes future mining impossible. On top of that it destroys the real estate market. Politicians like Paterson that go around advocating fracking are incredibly dumb or paid off by big money or both. Those behind it like David Cameron and Prince Charles are nothing less than criminals. Fracking could leads to more loss of life than war. That of course is why they want it as part of their Agenda for the 21st century. When Charles talks obliquely as tough decisions being taken for the long term future of humanity, he means killing people. See his recent speech at Inclusive Capitalism.
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