SXY 0.00% $4.60 senex energy limited

I don't agree with your statement 'the world will realize this...

  1. ST
    3,037 Posts.
    I don't agree with your statement 'the world will realize this shale oil is nothing but a ponzi scheme' but ask six economists what the next year will hold and you'll get six different answers.

    IMO this is the biggest threat to the oil industry. The US has had a hard time yes, but they are not wanting to back down and give up alternative ways of drilling for oil to become self sufficient. Therefore the only way to achieve this is through reducing production costs via technological advancement. We are currently seeing this being achieved by an Australian company LWP (Sorry to cross post) which has significantly reduced the cost of proppants and has just recently signed their first JV in India. They are expected to sign their first JV in the US soon with plans for other countries (including China).

    Yes, there will be some type of shortage in the near future but beyond that, I don't see $140 a bbl again. I only recently bought in SXY based on it's historical chart (currently in a dip) and as sure as night follows day, it will be back up over the 40c mark. My suggestion is to existing holders is that once you get your money back (and more hopefully) don't be too greedy as I don't think it will last.

    I'm no expert in any particular field, just got a macro approach.
 
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