Fracking Threatens OPEC as U.S. Output at 20-Year High

  • Posted by a hidden member.
    Log in to view his profile

    Feb 15, 2013 5:05 PM GMT
    http://www.bloomberg.com/news/2013-02-13/fracking-threatens-opec-as-u-s-output-at-20-year-high.html
  • Posted by a hidden member.
    Log in to view his profile

    Feb 15, 2013 5:18 PM GMT
    Those mother frackers are going to put OPEC out of business. Wouldn't that be nice?
  • Posted by a hidden member.
    Log in to view his profile

    Feb 15, 2013 5:33 PM GMT
    From an energy security point of view, it is good news for the US. On the other hand, a barrel of Middle Eastern oil costs about $10 a barrel to produce, while a fracked US barrel is around $70. In any case, developing nations, particularly China, will take up any slack from OPEC production, so OPEC producers are unlikely to suffer much from this development.
  • Posted by a hidden member.
    Log in to view his profile

    Feb 15, 2013 5:40 PM GMT
    Ex_Mil8 saidFrom an energy security point of view, it is good news for the US. On the other hand, a barrel of Middle Eastern oil costs about $10 a barrel to produce, while a fracked US barrel is around $70. In any case, developing nations, particularly China, will take up any slack from OPEC production, so OPEC producers are unlikely to suffer much from this development.


    That pricing differential is enough. That price differential also assumes that unlike natural gas fracking, the cost of oil fracking won't drop dramatically. Natural gas fracking is so cheap right now that it threatens conventional gas production (or maybe it would be more accurate that it's becoming "conventional" gas production).

    What is I think going to be the much larger threat to oil prices though is natural gas fracking. Compare oil prices to natural gas prices right now and you'll see why a lot of industries are converting towards natural gas.
  • conservativej...

    Posts: 2465

    Feb 15, 2013 8:19 PM GMT
    riddler78 said
    Ex_Mil8 saidFrom an energy security point of view, it is good news for the US. On the other hand, a barrel of Middle Eastern oil costs about $10 a barrel to produce, while a fracked US barrel is around $70. In any case, developing nations, particularly China, will take up any slack from OPEC production, so OPEC producers are unlikely to suffer much from this development.


    That pricing differential is enough. That price differential also assumes that unlike natural gas fracking, the cost of oil fracking won't drop dramatically. Natural gas fracking is so cheap right now that it threatens conventional gas production (or maybe it would be more accurate that it's becoming "conventional" gas production).

    What is I think going to be the much larger threat to oil prices though is natural gas fracking. Compare oil prices to natural gas prices right now and you'll see why a lot of industries are converting towards natural gas.


    Oil and gas is definately a very interesting play at the moment. A play that covers ones risk many times over.
  • Posted by a hidden member.
    Log in to view his profile

    May 01, 2013 4:41 PM GMT
    http://online.wsj.com/article/SB10001424127887324240804578414912310902382.html?mod=WSJ_hp_LEFTWhatsNewsCollection

    In Reversal, Neighbors Squeeze Russia's Gazprom Over Natural-Gas Prices

    In Europe, where Gazprom once had a reputation for hardball tactics and dictating prices, customers are tapping new sources. Booming shale-gas production in the U.S. has freed up vast quantities of other fuel from around the world, including American coal no longer needed at home. With that new leverage, Gazprom's European customers have squeezed billions of dollars in discounts from the company, and they are pressing for more.

    Europe is Gazprom's most lucrative market. The company supplies about one-quarter of the European Union's natural gas via a network of pipelines. Gazprom said Tuesday its net profit declined by $6.5 billion, or 15%, in 2012, as sales to the EU fell by about 9%.


    Naturally there are many extremists in the US who want to stop the gas from flowing.