Publications: The Petroleum Economics Monthly

The Hedge Fund War on Fracking (August 2018)


In this report, we explore, as the title conveys, what appears to be a hedge fund "war" against the fracking industry. Along the way, we point out the shortcomings of Bethany McLean’s NYT op-ed and her book Saudi America. Our main intention, however, is to highlight the pressure being put on frackers. After discussing McLean’s essay, we summarize the investor attacks on the industry, which have been going on for more than a year. Next, we provide an economic assessment of the fracking business, one we dubbed “manufracturing” three years ago. Finally, we examine the key observations presented in Saudi America—all of which we find to be off the mark.


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