QE, Fracking - oil & gas, oil in general, and how we are all going to hell in a hand-cart...
http://rt.com/shows/keiser-report/episode-517-max-keiser-961/
From about 4 1/2 minutes in, till 12 minutes in, is about the economics of fracking, the impossible economics of fracking.
Fracking in the US is being financed through cheap money (debt) that will never be paid as the returns get fewer and fewer and harder and harder to realise.
The argument expanded upon seems to be that the oil&gas industries hold hands with the banks as the skip together down the primrose path.
If, they say, oil were to drop to $80/barrel fracking would be utterly uneconomic, oil
needs to be at least $90/b and preferably $100/b.
All in all, what is being done currently is running to stay in the same place. Using deflationary methods in the skewed hop of encouraging higher inflation.
The clip is about half an hour long, and is worth the half hour of your time.