Today’s low prices mask an approaching supply crunch
by Adam Taggart
Chris Martenson’s Peak Prosperity
In spite of the recent low prices for oil and natural gas, an energy supply crunch is looming warns geological consultant Arthur Berman.
Berman’s perspective should not be lightly dismissed: he has 37 years of experience in petroleum exploration and production with 20 of those years at Amoco (now known as BP). He has published more than 100 articles and reports on geology, technology and the petroleum industry during the past five years –more than 20 of those focused on the shale industry including the Barnett, Fayetteville, Haynesville, Bakken and Eagleford plays:
Chris Martenson: I’m reading lots of reports in the Wall Street Journal and other places that say that shale companies could make money at $30 a barrel.. not, wait.. they’ll come roaring back at $40 a barrel. Well, here we are at $50 a barrel. Has the shale business come roaring back?
Arthur Berman: If we’re talking about a break-even oil price of $30 and you’re not talking about royalties or taxes or paying your employees or your debt service.. well yeah, you look pretty darn good. But you add in the normal cost of doing business and now we’re talking about a different story.