The Bakken Hit A New Record In 2018, But It’s A Bad Sign For The Industry

The insanity continues in the United States second largest shale oil field as the fundamental economics go from bad to worse. While it is true that the shale industry doesn’t look as dire as it did back in 2016 when oil prices fell off a cliff, I can assure you the worst is yet to come. Unfortunately, the market is blind to the biggest Ponzi Scheme in history, because wisdom and reason have disappeared from the energy industry years ago.

How can I say that? Well, I heard it from several oilmen that worked in the conventional oil industry… an industry that made good money, paid its bills, and didn’t go much into debt. They told me that the only way shale oil could work is if the company went public so it could raise money from some poor unworthy slobs they didn’t know in order to fund an uneconomic business model. These oilmen told me none of them would be crazy or stupid enough to go into the shale oil business. As veteran oil analyst Art Berman stated, “Why on earth would anyone want to invest in shale to at best, breakeven?”

So, the shale oil saga continues as the blind lead the blind. I know this because I have been fortunate enough to speak with someone in the shale industry and I continue to receive updates on just how bad the situation is unfolding. Sounds crazy, but there are a few very smart and clever people that know the disaster taking place in the shale industry, but not many.

Now, as I mentioned in the title of the article, the Bakken hit a new record in 2018, and it wasn’t a good sign for the industry. While it’s true that the Bakken did hit a new high in shale oil production last year, it also produced the most wastewater on record. And, it’s this tremendous amount of wastewater that exposes the increasing trouble the companies are facing in producing shale oil.

BAKKEN RECORD PRODUCTION 2018: 25 Billion Gallons Of Wastewater

It’s hard to get one’s mind around 25 billion gallons of wastewater, but it’s a lot. According to one source, 25 billion gallons of water would supply approximately 200,000 homes usage for the entire year. Regardless, it’s not just the massive amount of wastewater generated by the Bakken oil industry, it’s also the rising ratio of water to oil production that is troubling.

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