Why aren’t companies bringing back fracking? They were making s killing when oil was $50-$80 a barrel and only stopped when it dropped to under $30 a barrel as it wasn’t economically feasable. Why haven’t they continued this in a huge way?
Energy extraction is a very capital-intensive industry. Nobody is going to invest the money to open up those drilling operations unless they have confidence that the prices will remain high for a long period of time.
“Why aren’t companies bringing back fracking? They were making s killing when oil was $50-$80 a barrel and only stopped when it dropped to under $30 a barrel as it wasn’t economically feasable. Why haven’t they continued this in a huge way?”
The govt problem: Some private lands have been closed to leasing by Brandon. In areas that are open the govt is sitting on lease requests and not moving them forward. Govt is silently closing the areas while calling them open.
The money problem: Producing requires years of work upfront, which requires investment. Since govt is making it so difficult to produce oil/gas, investors have pulled billions from that area and sent it to green energy. Now there’s no way to just “produce more” when the years of prep work hasn’t been done yet.
Govt is at the root of both problems. It wants it this way.
Fracturing (no K) is a step in well completion after the cemented casing has been perforated in the hydrocarbon producing zone.
Not aware of any company that would spend money drilling a well and perforate only.
Volatility and lack of sense driving the oil markets. I mean eventually the value of oil will settle around $5 when all cars are electric. The rest from now til then is complete insanity. There is no credible argument for oil to be at $130.