Fracking Boom Bursts in Face of Low Oil Prices
Source: ecowatch.com - Andy Rowell, Oil Change Internation
The oil cartel, OPEC, has confirmed what has been obvious to many for months: U.S. shale production is in deep, deep trouble as the fracking boom bursts in the face of low oil prices.
The cartel published its latest monthly oil market report yesterday revealing that it believes it is winning the price war it started with the U.S. shale industry.
The report is seen as a must-read for people within the oil industry.
In North America, there are signs that U.S. production has started to respond to reduced investment and activity, says the report. Indeed, all eyes are on how quickly U.S. production falls.
Read more: https://ecowatch.com/2015/09/15/fracking-boom-bust-opec/
Meanwhile, both the sun and the wind have remained steady.
brush
(53,791 posts)Last edited Wed Sep 16, 2015, 01:01 AM - Edit history (1)
they maintained there oil production and withstood the global price drop because of the huge oil surplus to put the US fracking industry out of business.
All the more reason to invest heavily in alternate fuels solar, wind, geothermal, wave.
We have to get past the roadblocks of the oil/gas industry to move into the new age of renewables and help save the planet while we're at it.
flamingdem
(39,313 posts)They might have been our only chance to stop fracking.
mpcamb
(2,871 posts)I'd be happier if it was because of the ground water contamination, but I'm pleased nonetheless.
FBaggins
(26,748 posts)Especially in the face of recent articles claiming that "OPEC is losing it's grip on oil prices"
So far, they've both badly overestimated the impact of OPEC's move a little over a year ago. US production has remained persistently higher than they expected (and MUCH higher than the author believed at the time).
It should be remembered that Saudi statements are very often just as much a factor of internal OPEC politics as they are a reflection of global realities. Venezuela and Iran are pushing hard for an emergency meeting to cut OPEC production and boost prices, and word this week is that they may have Mexico on board. The Saudis are trying hard to keep the cartel together until significant US declines can be achieved. If oil prices look like they're going back up any time soon, that isn't going to happen.
Also - if you take a look at the Saudi predictions in that piece... they don't really support the title. They're really predicting a further decline in the rate of growth - not a "bust".
brush
(53,791 posts)FBaggins
(26,748 posts)Not that there's much of a difference these days. The vast majority of increased production has been coming from fracking.
Actually, their target was really any non-OPEC production that would eat into their market share. They don't really care that it's coming from the US... that's just the easiest target to analyze because the reporting is so robust.
brush
(53,791 posts)FBaggins
(26,748 posts)It was simultaneously thought to be the largest new competitor over the coming years and to have the highest cost of production... thus the easiest to target.
4dsc
(5,787 posts)this is main problem with people who believe alternative will somehow save the world in the coming decades. They don't understand that oil is a transportation fuel and that solar, wind, geothermal, wave are not.
Darb
(2,807 posts)Sure, oil for transportation and transport will be the main fuel for quite some time, but eventually, we will ween it down quite a ways from here. Think driverless cars.
brush
(53,791 posts)More and more efficient battery technology will not be limited to just passenger cars.
wordpix
(18,652 posts)of course, solar cars are made by home tinkerers and not commercially produced, but could be a reality one day. Also, seems to me that electric charging stations could (some do?) charge with solar/wind.
RussBLib
(9,020 posts)transportation fuel, plastics, you name it
the will is not there
nor is the money, for now
KelleyKramer
(8,969 posts)And if we get lower gas prices as a side effect, well that's just a bonus imho
Hydra
(14,459 posts)The frackers and oil shale industries are destroying my neck of the woods and wanted to get into protected lands for more.
No more dirty energy or industries- it's time we grew out of them.
cstanleytech
(26,298 posts)high enough to warrant it.
Hydra
(14,459 posts)The 2006-2008 forced crash stopped that for a bit, but they are back to covering every square inch of open space with houses or stripmalls. We need a sea change- this isn't sustainable, or even desirable.
madamesilverspurs
(15,805 posts)At the very least, there are far better and healthier uses for our water.
bluestateguy
(44,173 posts)Sorry boys. I hope you socked some money away.
Fearless
(18,421 posts)This was planned to cement their monopoly just as it was in the mid 2000's
Major Hogwash
(17,656 posts)They aren't pumping much oil out of the ground in Texas.
Last Christmas a friend of mine who went to North Dakota in 2013 to work on fracking oil came back to visit his family.
He told me that over 40% of the Texas oil rigs were sitting idle then, at that time.
That percentage has gone up another 10% or so since then.
Javaman
(62,531 posts)then the oil "bust" will vanish and old and new wells will come back online here.
there is no logic here, only money.
FBaggins
(26,748 posts)We've moved out of an era where OPEC was the swing producer that could essentially set market prices through cartel actions. They absolutely can cut into US oil production, but only by sustained low prices.
They can drive individual producers out of business, but the resource isn't going anywhere and now some larger oil company buys up those bankrupt assets for a bargain price (further reducing the per-bbl price needed to make production profitable).
As soon as prices are believed to be sustainably above a given level (I'm guessing somewhere in the $60 range), the taps will be opened wide again. What OPEC has really succeeded in doing is advancing US producers' technology until their break-even price is well below where it was just a couple years ago... while dramatically shortening the time that it takes them to drill new well.
Darb
(2,807 posts)money-grubbing jackasses.
Marthe48
(16,975 posts)We are right on the edge of the Utica and Marcellus shale formation. About 2 years ago, fracking activity went crazy. Aside from all the brine trucks, pipe yards, etc, 3 major chains built brand new motels here and another one is going up. And there are other motels going up in other cities nearby. Right now, fracking activity is much less. I can't help wondering if there is any kind of a plan from business leaders at all. I wouldn't be surprised if the motels end up closing and being abandoned. Not impossible in this area: in Parkersburg, a Holiday Inn was turned into a minimum security prison, a downtown hotel has become a homeless shelter and charity hub. And in Marietta, 2 old motels were razed, and 2 others converted into efficiency apartments.
On top of steady supplies of fuel, we need an economic system that has less on boom and bust and a lot more planning.
wordpix
(18,652 posts)always been that way, from miners and loggers moving east to west, to TX oil boom. San Fran boomed on gold, Portland and Seattle on timber. I live in the hills of New England and there were brass mills, iron mining, etc. that boomed these towns for awhile, but now there's just tourism, commuting for service industry jobs and a boom in real estate from big city residents wanting 2nd homes in quiet places.
Marthe48
(16,975 posts)Seems like humans use up a spot, and pack up and go elsewhere. do it again and again..
Gumboot
(531 posts)Now they really should turn their attention to cleaning up our polluted land & aquifers...
Except that... Dick Cheney exempted them from all environmental responsibility back in 2006.
Let's hope this is the beginning of the end for fracking, for all time. It's been a disaster for America.
snooper2
(30,151 posts)Oil Prices go up, start fracking again- Not rocket science