Thursday, March 25, 2010

"The Big Short" by Michael Lewis and a September 2008 Post

{Vanity Fair excerpt>>>>}

On September 21, 2008, a Drilling Santa Fe post began, "Will the crisis on Wall Street have an effect on the proposed gas and oil exploration in the Galisteo Basin? Recently, the 158 year old firm, Lehman, filed for Chapter 11 bankruptcy protection (Lehman Brothers Holdings, Inc.). An investment product Lehman offered was Master Limited Partnerships (MLPs)."...

On June 21, 2009, it was reported and posted, "Tecton announced in February it was no longer planning to drill in the Galisteo Basin, citing the economy and tougher state and county drilling regulations."

Now comes a book by Michael Lewis, "The Big Short: Inside the Doomsday Machine," which yields clear understanding of the financial debacle and the not well understood causes. The crux of the matter is a lack of accountability. As with the financial industry, when it comes to oil and gas drilling and development, accountability is key. Deregulation in the financial industry did not work; deregulation in the oil and gas industry will not work. Furthermore, the cost shifting from industry to the public purse is not fair and is unsustainable.

Not only is there a parallel between "The Big Short" and the oil and gas drilling saga, they are intertwined.

Related posts:

Lehman Brothers, MLPs, Quantum Energy Partners, Tecton Energy, LLC & the Galisteo Basin

Galisteo Basin well to be plugged

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