Looking forward to (hopefully) some of the responses from savvy freepers that are in this line of work. What is the bottom line when American frackers and oil companies hang it up for a while until the price comes back up?
Me personally, I welcome the low prices but as i understand it (from a few previous threads), too low will put some serious hurt on quite bit of the country as the “market” equalizes (which takes more time than there are “jobs” out there for out of work oil workers).
I think that our production here has factored in the lowered price of a barrel of oil.They had to know when our production went up the price was coming down.I could be wrong.
My hope and prayer is that the oil fracking industry will survive this virtually unscaved.
Hoping that there will be a “ eureka “ moment that will save the day of someone coming up with some way to frack oil even at a cheaper cost but still make a profit and do it efficiently.
I hope this “ eureka “ moment comes soon and finally put a dagger into the heart of OPEC.
The fracking industry has found ways to drill, and produce more efficiently in the last 5 years.
What puzzles me is oil price is declining while pundits tell us the economy is on fire. How does one square that?
I doubt that there will be a “walking away”. More likely new drilling will slow and or stop.
Drilling had already been slowing down. You can make money pumping at $60, but you can’t make money drilling at $60.