Fracking Boom About to Bust?

The New American ^ | October 24, 2014 | Bob Adelmann

[Bubba_Leroy]

The oil is there. We know how to get it. It means that no one will be able to sell the peak oil theory for years to come.

[dfwgator]

Energy Independence Now! Screw the Arabs.

[Sequoyah101]

There will be a drop in activity. How deep and how long remains to be seen. We almost always out drill demand and have a crash.

This is the first true overproduction I have seen in nearly 40 years in the business. I expect it won’t last that long though. Maybe 3 years at the most.

[JimSEA]

Better to have markets dictate production than to have governments take over.

[Fightin Whitey]

Harold Hamm has been right about a lot of things.

Be interesting to see if he's right This Time

[smoothsailing]

Here in SW PA they’re fracking like rabbits.

[Blue Collar Christian]

Nobody saw this coming? We compete in a global market. Our dependence lessening on OPEC as our production increases drives down their prices. If imports were to be boycotted, domestic prices would soar. Might make the OPEC chiefs whine, but India and China would lap the cheap stuff up.

[E. Pluribus Unum]

If it starts costing more to get it out of the ground than you get paid for it, you stop bringing it out of the ground until the price rises.

It's called an economic cycle. People used to know about such things, before government schools became political indoctrination facilities for global warming and homosexuality.

[clearcarbon]

Oil producers will be encouraged to innovate again to reduce production costs to maintain or increase profits.

[Gay State Conservative]

Fracking in the US,Canada and other civilized nations could finally break the back of OPEC...which would benefit the civilized world in more ways than one could imagine.Washington can do *something*...tax breaks,perhaps...to keep the exploration going here.

[onona]

Indeed ! Whoever was the initiator of fracking should be held in the same regard as Tesla and Edison.

[Sequoyah101]

I saw what he had to say. Someone will be right. Just a matter of time.

[molson209]

The oil is there. We know how to get it. It means that no one will be able to sell the peak oil theory for years to come.

OPEC might try to buy it up ,then close it up

[Parley Baer]

Supply and demand. Simple as that.

[RS_Rider]

“Here in SW PA they’re fracking like rabbits”

A wolf has it’s eyes on those rabbits.

[smoothsailing]

You got that right. damn wolf wants to tax them to death. and that’ll be the end of those fracking rabbits.

Wanna save those fracking rabbits?
VOTE CORBETT on Nov. 4th.

[Nowhere Man]

A wolf has it’s eyes on those rabbits.

I know, Tom "Wolfie" Wolf. I remember my mother before she passed away last year, said Tom Wolf "looks like a Communist with his beady eyes and beard (which resembles Lenin's IMHO)." I keep thinking with Wolfie out there, we need to be like "Lambsy" from the Hanna Barbera 1968 cartoon show "Chattanooga Cats." In the cartoon, Lambsy cried, "it's the wolf!" when "Mildew Wolf" comes for him and his sheepdog bodyguard pounds the crap out of Mildew Wolf. Trouble is in PA's case, we might not have a sheepdog to keep the Tom Wolf at bay. Well, at least here in Ohio (I recently moved from PA to Ohio) we have more of a chance to keep fracking going although it hurts me to see PA sucumb to Mildew Tom Wolf.

[X-spurt]

“OPEC might try to buy it up ,then close it up”
Who is OPEC going to buy it from?

There are literally millions of owners of oil and gas minerals in the US. The process is the producers “lease” the O&G minerals for a sizable share of the oil produced for a set time or until they quit producing the leased O&G. Only a fool would sell their minerals, with the possible exception of them paying us owners many times more than it would lease for in a lifetime, at which point even the Saudis would be long broke.

Right now the US fracing oil production cost is around $67 a barrel, with that cost coming down all the time. Its unlikely oil prices will go below the cost to produce anytime soon or for any length of time. OPEC and Russia’s production costs are much higher which puts them in worrisome spots.

[Balding_Eagle]

OPEC cost of lifting the oil and delivering it to a refinery is above $67?

I am making a WAG here, but isn’t it about half that?