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I have been extremely skeptical of fracking for years.

When people raved about how it's wrecking the environment  (It is)
I said it will end.

When people raved about how it's the miracle energy (It isn't)
I said it will end.

When people worried about if it was causing earthquakes (it does)
I said it will end.

When people said it was leaking greenhouse gasses,
I said it would end

Well looks like the EIA has finally caught on to the scam.

now most of this is in Naked Capitalism.com  so go there to read

http://www.nakedcapitalism.com/...

Based on data compiled from quarterly reports, for the year ending March 31, 2014, cash from operations for 127 major oil and natural gas companies totaled $568 billion, and major uses of cash totaled $677 billion, a difference of almost $110 billion.

To fill this $110 billion hole that they’d dug in just one year, these 127 oil and gas companies went out and increased their net debt by $106 billion. But that wasn’t enough. To raise more cash, they also sold $73 billion in assets. It left them with more cash (borrowed cash, that is) on the balance sheet than before, which pleased analysts, and it left them with a pile of additional debt and fewer assets to generate revenues with in order to service this debt.

It has been going on for years. In 2010, the hole left behind by fracking was only $18 billion. During each of the last three years, the gap was over $100 billion. This is the chart of an industry with apparently steep and permanent negative free cash-flows:

i always said if fracking was so profitable who would sell these wells?

instead it's just a big old scam.

the industry is just in negative cash flow.

well  wall street may want return but they hate losses,
so expect lots of cold calls on fracking wells now.

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