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Oil Guru Destroys All Of The Hype About America's Energy Boom

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arthur berman

Not everyone believes the U.S. is capable of becoming energy independent thanks to its shale oil and gas reserves, as the International Energy Association suggested recently.

The math just doesn't work out, they say — America consumes too much. 

But some are even more skeptical than that.

Arthur Berman, an oil analyst with Labyrinth Consulting Services, says the promise of America's shale reserves have been vastly overstated.

His main argument: shale is too expensive to drill, and shale wells usually don't last longer than a couple of years.

Last year, he laid out his case at a gathering of the Association for the Study of Peak Oil and Gas in Austin Texas.

With his permission, we've reproduced it here.

Berman argues the promise of America's shale revolution is "magical thinking." Shale drilling is too expensive and too ephemeral to make a lasting impact.



There tends to be a huge gap between the estimated amount recoverable and what actually ends up getting recovered.



Shale is the most expensive and most complicated source of energy.



See the rest of the story at Business Insider

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