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How The Fracking Revolution Broke OPEC's Hold On Oil Prices
Forbes ^ | July 22,2018 | Robert Rapier

Posted on 07/24/2018 8:53:32 AM PDT by Hojczyk

The success of this marriage would unlock oil in tight oil and shale oil deposits that had previously been too expensive to recover, and would result in one of the greatest oil booms the world had ever seen. In fact, the "fracking revolution" caused U.S. oil production to turn upward in 2009, and then rise over the next seven years at the fastest rate in U.S. history.

While it is still true that OPEC still produced 42.6% of the world's oil in 2017, the majority of new oil production since 2008 has come from the U.S.It is hard to overstate the consequences of the fracking revolution, because the U.S. oil production surge broke OPEC's stranglehold on global oil prices. Every country in the world would likely have paid much higher oil prices over the past decade if the new oil boom in the U.S. hadn't happened, further enriching OPEC and Russia in the process.

But U.S. tight oil production will inevitably slow and once again begin to decline. The key questions are how soon this will happen, and whether a return to >$100/bbl oil -- and in turn OPEC's stranglehold -- awaits that inevitability.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Politics/Elections
KEYWORDS: drillbabydrill; energy; fracking; oil; palinwasright

1 posted on 07/24/2018 8:53:32 AM PDT by Hojczyk
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To: Hojczyk

The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters Gregory Zuckerman

Things looked grim for American energy in 2006, but a handful of wildcatters were determined to tap massive deposits of oil and gas that giants like Exxon and Chevron had ignored. They risked everything on a new process called fracking. Within a few years, they solved America’s dependence on imported energy, triggered a global environmental controversy, and made and lost astonishing fortunes.

No one understands the frackers—their ambitions, personalities, and foibles—better than Wall Street Journal reporter Gregory Zuckerman. His exclusive access drives this dramatic narrative, which stretches from North Dakota to Texas to Wall Street.

Just read that there cutting rigs in Texas because they cannot get the oil out to market

Need more pipelines and ..tankers for rail and trucks


2 posted on 07/24/2018 8:57:03 AM PDT by Hojczyk
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To: Hojczyk; MeganC

Drill Baby, Drill!


3 posted on 07/24/2018 8:57:48 AM PDT by KC_Lion (If you want on First Lady Melania's, Ivanka Trump's or Sarah Palin's Ping Lists, just let me know.)
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To: Hojczyk

Despite that, we still had to ask the Saudis to increase production recently.

We need to develop alternatives to oil.

We need safe nuclear reactors and lots of them.

We need investments in particle physics, because I think that may be where true breakthroughs will emerge.


4 posted on 07/24/2018 8:58:01 AM PDT by DannyTN
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To: Hojczyk

Which part of “ fracing aint new “ dont they understand.
Its been around for a very long time


5 posted on 07/24/2018 9:02:28 AM PDT by South Dakota
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To: Hojczyk

USA is the largest producer of carbon based energy in the world. Saudi Arabia has less than a decade of crude exports so they are approaching an end and the USA will increase greatly.


6 posted on 07/24/2018 9:02:33 AM PDT by mountainlion (Live well for those that did not make it back.)
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To: Hojczyk

That’s frackin’ nutz. In Reno the per gallon price is around $3.39. And that’s for the off brand stuff. The shells and exxons are about 25 to 30 cents higher per gallon.


7 posted on 07/24/2018 9:03:27 AM PDT by rktman (Enlisted in the Navy in '67 to protect folks rights to strip my rights. WTH?)
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To: Hojczyk

The key questions are how soon this will happen, and whether a return to >$100/bbl oil — and in turn OPEC’s stranglehold — awaits that inevitability.


This is the key question.

Will it be in 50 years or 200?

Timing is everything.

Even a 50 year horizon means there will be so much technological innovation the question becomes meaningless.

50 years ago, in 1968, there was no OPEC.


8 posted on 07/24/2018 9:06:27 AM PDT by marktwain (President Trump and his supporters are the Resistance. His opponents are the Reactionaries.)
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To: Hojczyk

I don’t own a motor vehicle, but I really want to see gas get below $2/gal.


9 posted on 07/24/2018 9:11:24 AM PDT by wastedyears (The left would kill every single one of us and our families if they knew they could get away with it)
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To: DannyTN
Despite that, we still had to ask the Saudis to increase production recently.

Asking probably went like this: "Hey, we need you to increase your output by 10% or so. After all I'd be a shame if all that shale oil came back on line.

10 posted on 07/24/2018 9:19:01 AM PDT by MAexile (Bats left, votes rights)
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To: Hojczyk

Other than the Permian Basin, most unconventional plays are getting long in the tooth as far as production growth.


11 posted on 07/24/2018 10:33:53 AM PDT by crusty old prospector
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To: mountainlion

One thing to remember is that if the price gets high enough, there are shale plays all over the world that can be developed. They are only done on a large scale here in America because we pioneered the drilling and fracing industry. I doubt if any wells in the Middle East have ever been fraced. Their wells flow naturally.


12 posted on 07/24/2018 10:45:53 AM PDT by crusty old prospector
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To: KC_Lion

Oh yeah...$100 per barrel would put Steve back in a sweet job! That’d be AWESOME!!!


13 posted on 07/24/2018 10:46:38 AM PDT by MeganC (There is nothing feminine about feminism.)
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To: Hojczyk

Why do you think “progressives” HATE it so strongly? THIS is why.


14 posted on 07/24/2018 10:56:51 AM PDT by TBP (Progressives lack compassion and tolerance. Their self-aggrandizement is all that matters.)
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To: DannyTN
"We need investments in particle physics, because I think that may be where true breakthroughs will emerge.

Look up recent discoveries from SAFIRE. Totally unexpected and unknown phenomena that looks to be converging hot fusion and LENR.

15 posted on 07/24/2018 11:03:04 AM PDT by Wonder Warthog (The Hog of Steel and NRA Life Member)
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To: DannyTN

https://eic.rsc.org/feature/is-thorium-the-perfect-fuel/2000092.article

The electrical generation solution was developed in the 50’s. Diesel is going to be much harder to replace, if not economically impossible.


16 posted on 07/24/2018 11:06:03 AM PDT by zek157
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To: Hojczyk
The key questions are how soon this will happen, and whether a return to >$100/bbl oil — and in turn OPEC’s stranglehold — awaits that inevitability.

The question assumes that the US fracking industry will run out of oil before OPEC does. We don't know the real level of Arab oil reserves.

17 posted on 07/24/2018 11:17:33 AM PDT by PapaBear3625 ("It rubs the rainbow on it’s skin or it gets the diversity again!")
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To: Hojczyk
U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves
18 posted on 07/24/2018 11:20:29 AM PDT by PapaBear3625 ("It rubs the rainbow on it’s skin or it gets the diversity again!")
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