Tuesday, April 11, 2017

Shale and Frackers do not make much money unless oil prices are higher

Energy is making a complicated bottom. You’ve got to look back a year or two and see that in 2015/16/17, oil prices made their low. I expect another drop down before it makes that low. But at that point, people should probably buy energy because the known reserves of oil continue to decline, except for fracking. Most fracking cannot make money unless prices are much higher.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.