Saudi America: The Truth About Fracking and How It's Changing the World

Bethany McLean absolutely knocked it out of the park with Saudi America. I cracked the cover, and literally didn’t get out of my chair until I finished. The upstream oil and gas sector needs capital like a whale needs plankton!! I’ve been a geoscientist in the oil and gas industry for 35-years, and feel that I understand the business quite well, but I learned an incredible amount by reading Saudi America. Bethany’s analytical abilities, clarity of thought, and communication style, continue to impress and deliver. Not only is the book filled with accuracy and precision in facts and history, but Bethany’s ability to put it all into an understandable context, and to interpret the facts and events, is truly remarkable. Without any doubt, Bethany’s track record of understanding business, capital allocation, investment, and asset bubbles affords her the ability to see common themes in the many companies and industries she investigates. Her credibility and investigative expertise is impeccable. The oil and gas industry and its investors are extraordinarily blessed to get her time and attention for this work. The other thing Saudi America has going for it is the story telling and entertainment factor. I love the science and business economics of oil and gas, but the optimistic, risk taking, wild, and entertaining human characters in the oil field are what give it life and soul. Bethany’s focus on Aubrey McClendon was perfect, and his story is as complex as the business is risky. The book is fairly short, but is quite comprehensive in scope, history, business... and gives the reader a broad understanding and appreciation for the shale revolution we’re in the middle of. Saudi America is a must read, and a wonderful break from all of the political drama we can’t seem to get away from these days. Bethany McLean's books are all treasures, and this is another great one !!

Bethany McLean is a talented writer with books as The Smartest Guys in the Room and Shaky Ground. Both were outstanding and informative reads, with the Enron book (Smartest Guys) about the various personalities and corporate malfeasance highlighted. Her current book, Saudi America, is somewhat brief, but an easy read. I have read several 'fracking' books (don't misread this term!) with Gregory Zuckerman's 'The Frackers' being a detailed history of fracking. It reveals individuals as George Mitchell, Harold Hamm, Nicholas Steinsberger, Kent Bowker, Aubrey McClendon, Tom Ward, Charif Souki, Mark Papa and other pioneers in the hydraulic fracturing process development. Mrs. McLean concentrates on Aubrey McClendon, a most interesting and high profile oil and gas leader, who met an untimely end, March 2nd, 2016. Her Epilogue contains the reason for writing the book and possible outcomes for American energy production. Energy production in the USA a few years ago was heading down the 'Peak Oil' slope. OPEC and especially Saudi Arabia and Russia must wonder if the shale revolution will continue with American ingenuity discovering more oil and natural gas.

Maybe some experts in the field will quibble with Bethany McLean's analysis of the American Energy industry but, for a novice like myself, this was an engrossing read. It is amazing that so much wealth has been amassed in such a quiet manner. I had never heard the stories of Pegula, Hildebrand, the Wilks, Wilson and Flores but many of them are billionaire investors in the field. The industry's brashness is personified in Aubrey McClendon. What an amazing protagonist to have as the author weaves the violent swings in his personal fortunes with those of the expanding and collapsing energy industry. "Asking me what to do with extra cash is like asking a fraternity boy what to do with the beer." That swashbuckling braggadocio created an empire that has had trouble standing on foundations built on overly optimistic models. The book is littered with fascinating nuggets like: - unassuming Enron spin off EOG is valued more than what Enron was at its peak - Chesapeake had years where it pumped more gas than any American company not named Exxon Mobil - in 12 years, North Dakota went from ninth to second in oil production among states - Wells use 12 million pounds of sand, up from 4 million only a few years ago - Permian production alone produced more energy than 8 of 13 OPEC countries I like the way McLean concludes the book. She seems pessimistic about the industry's future by citing, for instance that Bakken wells decline by 70% in the first year and quotes Einhorn on his analysis that from 2006-2014 the industry spent 80 billion more than it earned. She moderates this with analysis that gas will remain plentiful and perhaps a useful geopolitical tool. And that for every Chesapeake, there are conservative operators like EOG that can be profitable at considerably lower oil prices.

I'm happy I came across this book. It was suggested by one of our MBA professors as an unbiased and thorough perspective of the real economy and financial consequences behind the fracking boom. The author doesn't try to convince the reader, but rather offers a sober look and analysis for the reader to decide, as only time will judge if the fracking is a real THING or not.

I found this mini book a very interesting and informative read. I would recommend it to anybody interested in learning more about the US shale revolution.

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