Backdoor frack attack? All I have been hearing is how wonderful it is to have $2 gasoline again!
Methinks you have swerved into the likely result.
People in Tx are already bleating about that 3.5 magnitude quake that occurred yesterday and attributed it to fracking.
It’s the normal cyclical math of the marketplace. When prices for a good are high more enter the market to sell because it’s easier to be profitable. Then supplies go way up. Which makes prices fall. Which makes it harder to be profitable. Which makes companies go under. Which lowers supplies. Which drives up prices. Lather, rinse, repeat.
Saudi/Big Oil conspiracy to take over small producers?
This was the Saudi plan all along. It seems to be working. If they can drive the price down to or close to $30 it will effectively shut down all Fracking operations and much of U.S. Drilling. Even after the price starts climbing again, the costs to start back up are so prohibitive, it will take years to get back to where we were.
No, too much of it is financed at a high risk.
It’s a bubble much like the housing bubble.
With every boom there is a bust. The smart producer knows how to organize business so that they can adjust their production so as to accommodate the ebb and flow of any economy. Every other industry, aluminum, steel, autos, etc. know well that if they aren’t flexible they die.