Saudi / Opec - 1, US Oil / Fracking - Zero

[easyt65]

US oil and gas industry stagnating to dangerous levels, job losses rising
US oil and gas industry stagnating to dangerous levels, job losses rising - Hot Air

"North Dakota’s largest oil producer says it will cut all spending by 80 percent in the state and suspend its well-completion operations in April due to depressed crude prices."


Fracking drove the cost of oil down...and shook the world in the process. It forced Saudi / OPEC to drop their prices extremely low - losing a ton of money in the process - in an attempt to drive the competition out of business...and it's working.

Think the oil prices will stay this low? The moment Fracking businesses close shop due to this tactic OPEC will jack the price of a barrel of oil up so high and so fast it will make your head spin.

Can Fracking respond and return? How quickly will it be able to if possible? One good thing - they have proven America can produce it's own oil and reshape the oil market if need be. For now, however, it's days seem to be numbered as Saudi et al... are determined to drive them out of business.

 

[easyt65]

(Truly Non-Partisan-intended question Would it be more worthwhile / palatable to subsidize Fracking than let it go under and return to paying a much higher rate for a barrel of oil to foreign nations, especially those that support terrorism?

 

[martybegan]

US oil and gas industry stagnating to dangerous levels, job losses rising
US oil and gas industry stagnating to dangerous levels, job losses rising - Hot Air

"North Dakota’s largest oil producer says it will cut all spending by 80 percent in the state and suspend its well-completion operations in April due to depressed crude prices."


Fracking drove the cost of oil down...and shook the world in the process. It forced Saudi / OPEC to drop their prices extremely low - losing a ton of money in the process - in an attempt to drive the competition out of business...and it's working.

Think the oil prices will stay this low? The moment Fracking businesses close shop due to this tactic OPEC will jack the price of a barrel of oil up so high and so fast it will make your head spin.

Can Fracking respond and return? How quickly will it be able to if possible? One good thing - they have proven America can produce it's own oil and reshape the oil market if need be. For now, however, it's days seem to be numbered as Saudi et al... are determined to drive them out of business.

Oil prices have no cause to go any higher than around $80 a barrel in the next few years. Oil storage facilities are near maximum, and any decrease from OPEC would not be felt by refiners for months. Plus, even if speculators manage to panic people and drive prices up, that will make the fracking sites being shut down in the US profitable again, and thus allow them to turn back on.

The people in the oil industry are used to peaks and valleys, most have other types of less well paying work to go back to. They wait for the oil business to pick back up and off they go.

 

[SassyIrishLass]

Frackers recently announced they would be back in business when oil hits 40...40 is the new 70

 

[Rustic]

The oil will always be there for future use...

 

[Skylar]

US oil and gas industry stagnating to dangerous levels, job losses rising
US oil and gas industry stagnating to dangerous levels, job losses rising - Hot Air

"North Dakota’s largest oil producer says it will cut all spending by 80 percent in the state and suspend its well-completion operations in April due to depressed crude prices."


Fracking drove the cost of oil down...and shook the world in the process. It forced Saudi / OPEC to drop their prices extremely low - losing a ton of money in the process - in an attempt to drive the competition out of business...and it's working.

Think the oil prices will stay this low? The moment Fracking businesses close shop due to this tactic OPEC will jack the price of a barrel of oil up so high and so fast it will make your head spin.

Can Fracking respond and return? How quickly will it be able to if possible? One good thing - they have proven America can produce it's own oil and reshape the oil market if need be. For now, however, it's days seem to be numbered as Saudi et al... are determined to drive them out of business.

Sure it can respond and return. The primary advantage of fracking is its granulated scalability. And the fact that you can stop it and start it again with little expense. When prices rise again, it can kick right back up where it left off.

I think the Saudi's goal in keeping supply high is less to drive fracking out of business. But more to temporarily cut off the funding that fracking can use to expand or maintain its operations in the face of environmental and regulatory concerns. When fracking is highly profitable and produces loads of jobs, the environmental concerns get put on the back burner. And there is incentive to turn a blind eye to safety and a general lack of regulation.

While oil is low, these concerns can see more success. And once such environmental and regulatory rules take root, it will make fracking harder and more expensive in the future. Which is what I think the Saudi end goal is.

 

[RodISHI]

(Truly Non-Partisan-intended question Would it be more worthwhile / palatable to subsidize Fracking than let it go under and return to paying a much higher rate for a barrel of oil to foreign nations, especially those that support terrorism?

No and if the leaders of this country are too stupid to know where to get their oil at this point besides the Saudi's those people need to step aside and let someone who does take charge.