Get rid of the obstructionists (including odumbo) and we will see a major increase, of that I have no doubt.
This article makes it sound like people should have an expectation that oil drilling is a stable industry that doesn’t go through boom and bust cycles. Aren’t these shale oil start up and mom & pop operations the very definition of boom & bust? Why shouldn’t we have expected a bust at some point? The industry will shake off the weak players, consolidate and become more mature.
Government is getting in the way, to be sure. But certainly the lower cost of crude everywhere is slowing things down.
I know of a large gold mine that wants to get going here in Alaska, they need a certain price of gold to be economically feasable. Until gold reaches a higher price and stays there, it aint happening. There is gold there for sure, just costs too much to get it.
The beautiful thing is that the North Dakota cost of production represents the ultimate cap on oil prices.
There was an oversupply on the market, so some of the expansion had to go away and the market is contracting. Eventually it will over contract and expand again.
There is no good reason to think that the industry will collapse and oil will jump back to 150 $/bl when there is oil that can be profitably extracted at 50 $/bl.
They are keeping crude low to kill the fracking business