Skip to comments.How The Fracking Revolution Broke OPEC's Hold On Oil Prices
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 ...
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 Americas dependence on imported energy, triggered a global environmental controversy, and made and lost astonishing fortunes.
No one understands the frackerstheir ambitions, personalities, and foiblesbetter 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
Drill Baby, Drill!
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.
Which part of “ fracing aint new “ dont they understand.
Its been around for a very long time
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.
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.
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.
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.
I don’t own a motor vehicle, but I really want to see gas get below $2/gal.
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.
Other than the Permian Basin, most unconventional plays are getting long in the tooth as far as production growth.
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.
Oh yeah...$100 per barrel would put Steve back in a sweet job! That’d be AWESOME!!!
Why do you think “progressives” HATE it so strongly? THIS is why.
Look up recent discoveries from SAFIRE. Totally unexpected and unknown phenomena that looks to be converging hot fusion and LENR.
The electrical generation solution was developed in the 50’s. Diesel is going to be much harder to replace, if not economically impossible.
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.
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