Shale Boom, Shale Bust: The Myth of Saudi America

Just about everyone has heard something about the ‘revolution’ in shale oil. Hydraulic fracturing (fracking) of rock formations unique to the United States offers the promise of cheap and abundant energy, terrific economic growth and jobs – lots of jobs. But in 2014, something went terribly wrong with this rosy scenario of “Saudi America”: A unexpected collapse in the price of oil that’s bankrupting the oil patch, destroying jobs and threatening any plans of a renewable energy future. What happened? Why has this miracle ‘revolution’ generated so many losers and so few winners? Why isn’t the United States any closer to energy independence than it was before oil from shale was even imagined? What can be done to put the markets and the industry right so that shale can deliver on even some of what’s been promised?