How Shale Oil Production Is Akin to a Ponzi Scheme

Dan Dicker, Energy contributor at TheStreet.com, talks to Jill Malandrino of Options Action about his upcoming book 'Shale Boom, Shale Bust.' In it, Dicker likens shale oil production to a Ponzi scheme, in that it inevitably requires more and more capital chasing more and more wells in order to keep up with production targets. Because of this, shale oil is the most sensitive to short term oil prices. Low prices are putting several marginal shale oil players at risk now. Some of these companies that will find it difficult to survive include SandRidge, Goodrich, Halcon and Approach Resources.