Topic: Shale Gas

Economists predict that oil prices could drop to $10 a barrel as the global economy enters a recession. The price war began when Russia refused to cut production in response to falling Chinese demand, prompting Saudi Arabia to ramp up its own output to bankrupt competitors. Despite the global glut, gas prices in California remain high due to state legislature actions and taxes.

The EU-Ukraine agreement is characterized as a resource-driven trade deal focused on agricultural produce and energy pipelines. The discussion highlights the role of the United States in Ukrainian affairs, specifically mentioning Victoria Nuland and Chevron's interest in shale oil contracts and the free flow of energy into Europe.

The geopolitical conflict in Ukraine is framed as a struggle over energy resources, specifically shale gas fields. The hosts discuss a French debate where a socialist politician argued that the crisis is a "scam" to get American gas into Europe. They note that while France has banned fracking domestically, French energy company Total S.A. continues fracking operations abroad.

Russia and the West are engaged in a strategic battle over the European energy market, with Vladimir Putin promoting the South Stream pipeline as a bypass through Bulgaria and Serbia. Recent developments include shale gas equipment installation in eastern Ukraine and oil exploration deals in Ethiopia and Iraq. The conflict is framed as a competition to secure the European Union as a primary natural gas customer.

New industry advertisements have shifted from using the term "fracking" to the more palatable phrase "energy from shale." These campaigns promote shale gas as a secure energy source that creates jobs and funds public services. Critics point out that the process is essentially natural gas extraction used to create steam for power, similar to nuclear energy but with more continuous fuel sales.

The "shale gas boom" in America is questioned, with the hosts suggesting that fracking has not delivered the 100-year energy independence promised by the government. They also discuss the extreme volatility of Bitcoin, speculating that central banks are now "playing in the game" to destabilize the cryptocurrency. The financial website Finviz is recommended for tracking market data.

John C. Dvorak presents his thesis on 40-year and 80-year economic depression cycles, comparing the current era to the 1850s. He argues that the discovery of shale gas and oil in the U.S. is acting as a temporary wealth influx similar to the 1849 Gold Rush, potentially delaying a major crash until 2017. The discussion covers the historical depression of 1857 and a predicted global conflagration in 2020.

An analyst's question during an Anadarko earnings call reveals the industry's struggle with "sub-$3" natural gas prices. The hosts explain that because gas is currently too cheap to be profitable for many fracking operations, companies are shifting focus to "liquids-rich" opportunities. They suggest that geopolitical instability is often used to "jack up" energy prices to benefit these corporations.

The Sunday New York Times is deconstructed, focusing on a front-page photo of Governor Cuomo and a story about the "natural gas bubble." Another article highlights that the new span of the San Francisco-Oakland Bay Bridge is being constructed using Chinese steel and labor. The hosts criticize the lack of domestic steel production and the promotional tone regarding China's move up the global economic value chain.

The town of Guy, Arkansas, has experienced over 500 earthquakes since mid-September, a massive increase from previous years. Local residents and experts attribute the seismic activity to "fracking" (hydraulic fracturing) in the Fayetteville Shale. The hosts mock a local mayor's attempt to downplay the quakes and call for an end to the practice in the state.

A listener from Pennsylvania describes a phenomenon where tap water near Marcellus Shale drilling sites can be lit on fire due to dissolved natural gas. While the industry claims this can occur naturally, the anecdote highlights the dangers of gas accumulation in pump houses and residential wells.

Network news and HBO specials are increasingly covering the environmental impact of hydraulic fracturing (fracking) in the Marcellus Shale region. Residents in Hickory, Pennsylvania, report concerns over noise, dust, and contaminated well water. The discussion highlights claims of flammable tap water resulting from gas drilling operations.