Frackung is not going to bring jobs. As a matter of fact it has eliminated jobs. They started fracking in old wells and realized there is a lot more oil in the ground than they thought. You don't hear about peak oil theory anymore. It has changed everything in the world. Middle East dictators no longer can secure their countries because we and a lot of other countries don't need there oil. And it had made it cheaper and easier to extract oil eliminating jobs that are never coming back
I don't work in oil and gas but my understanding is that while fracking has gotten us much more oil leading it's still far more expensive than Middle Eastern crude. Oil under a certain price below barrel makes it uneconomical to frack and instead buy Saudi light sweet crude. That's why ND which was booming a few years ago has now collapsed. As long as Saudi Arabia and other Middle Eastern countries can still pump high quality crude they will still have an outsized economic and geo-political influence.
IIRC breaking point for fracking is about $45 per barrel (possibly less) with current tech. All that is need is for the Saudis to keep oil prices below that break even point and fracking becomes unprofitable and I believe they have a large margin to play with in that respect.
Ok, I'm cool then. I only walk on concrete, send my kids to test the dirt tremors and my neighbors are all gun nuts.
This is absolutely true in CO, too. A best bud of mine owns fracking wells in CO, and closely follows the Permian area, where he's from (Midland) and still has strong ties to O&G there. Another key point my fracking friend said, unlike regular oil wells, the fracked ones that he and many others are shutting down (due to Market forces), they have no idea what effect that has on restarting the flow. Potentially, they have to refracture the whole field. What added costs are there to restart a well? versus regular wells found this: Frack pumping costs ... The number of stages, which often correlates with lateral length, is important since this fracturing process, with its associated horsepower and costs, must be repeated for each stage. The total costs for all stages can range from $1.0 million to $2.0 million, making up 14–41 per cent of a well’s total cost. https://www.jwnenergy.com/article/2016/7/20/here-are-five-main-costs-frac-job-us/
But we still don't need their oil. I do appreciate your reply but it would seem Saudia Arabia isnt using that power against because they probably ran up massive debt with their lavish king lifestyles
Fracking is the reason why O&G in the US got rejuvenated. Yes, the amount of production of oil has been the problem, but OPEC+ has not been able to agree on a reasonable amount of production. If the political situation in OPEC+ and foreign relations ever calm down, yes, there's going to be a lockdown and stabilization of the oil price, and there will be a lot of jobs for fracking.
I don't work in O&G but my father was an engineer in O&G for almost fifty years, and for years now he's been telling me we've reached peak oil because all the easy-to-reach stuff has been found. We can find more, and fracking certainly helps us find more, but it's not cheap per barrel. All the cheap oil has been found. Perhaps advances have been made that I'm unaware of that have made extraction cheaper.
Bro how much do you pay for gas How much ten years ago Again fracking + horizontal drilling has completely changed the supply dynamic. The proof is in your gas tank
We have gotten very good at fracking. Breakeven price is less than 30 bucks for some companies. Read the 10k of some of the companies. Oxy, Fang, Cxo, pxd they are all making money with these prices.
This. Energy costs are a big part of almost all commercial endeavors. When energy gets expensive, investments can become uneconomic and don't happen. The low prices have been bad for our E&P industry, but pretty good for most everyone else. However: heretofore, the price of electricity correlated pretty strongly with the price of natural gas, but that is becoming less the case as penetration of renewables increases. There are, of course, energy needs that need to be supplied by oil and gas and not electricity. But that decoupling will free a lot of the US economy from the ebb and flow of oil and gas prices. We still want our E&P to be as efficient as they can be but we're not going to be as dependent as we'd been in the past.
For clarification purposes im not anti fracking I just wrote this because of the political noise. I still hear former oil and gas workers who think their job is coming back I saw some people on Facebook saying vote for Trump for fracking after last night Edit @rockbox Surprised you got through all those mistakes
Fracking has brought down oil prices. Without it, OPEC and most notably Saudi Arabia, could charge what ever they wanted for it. With fracking, Saudi Arabia has to stay below the price where fracking is profitable. We will never see 100 dollars a barrel again unless there is a war.
This is just absolutely untrue. Going back to the Bakken, then Eagle Ford, and most recently the Permian. But like everything else in the O&G industry, it's cyclical and the jobs don't stay in the same place forever. Now the Permian's crashed, given supply actions by OPEC/Russia and then global demand lowering (hello, COVID). We'll see what happens next, but as was mentioned by someone earlier...fracking works, given current tech in current locations, at a price around $50. But you're not going to see substantial reactivation until the price gets a good bit over that. And then the price will come down because people cannot globally play nice together...and the cycle begins anew.
This isnt cyclical. Its going on five years. The supply dynamic has completely changed. From peak to never ending cheap to access. Every time prices creap upwards to many players can access cheap oil
