Obama: “We can’t just drill our way out of the problem,”

[GURPS]

I hate to admit it: Obama is right. We didn’t drill our way out, we fracked our way to a fuel surplus. There has been so much winning recently that OPEC is now complaining.

The Organization of Petroleum Exporting Countries (OPEC) asked the U.S. to stop producing so much oil, according to a report Thursday.

OPEC’s report blames the U.S. in particular because hydraulic fracturing, or fracking, has greatly increased American oil production. The new production has led a lengthy period of very low oil prices. OPEC claims raising global oil prices will “require the collective efforts of all oil producers” and should be done “not only for the benefit of the individual countries, but also for the general prosperity of the world economy.”

New American oil production is undermining OPEC’s efforts to keep global prices between $50 and $60 per barrel, with current prices hovering around $47 a barrel.

“I think [OPEC] are now acutely aware that they don’t have the kind of influence they used to have 10 years ago, and that shale is now the swing producer in the market,” Tom Pugh, commodities economist at Capital Economics, told CNN Money.​

http://legalinsurrection.com/2017/05/winning-usa-fracks-its-way-to-a-fuel-surplus/

 

[SamSpade]

Apparently fracking technology has improved so much over the past several years, OPEC can no longer alter production rates to drive down prices and crush fracking.
I remember when the break even price was in the 70's - now it's below 40. We're now producing about as much oil as we've ever done.

 

[GURPS]

Apparently fracking technology has improved so much over the past several years, OPEC can no longer alter production rates to drive down prices and crush fracking.
I remember when the break even price was in the 70's - now it's below 40. We're now producing about as much oil as we've ever done.

Yeah, I think OPEC's days are numbered

 

[Bird Dog]

F opec

 

[PeoplesElbow]

Personally I think we should shutter all domestic operation, use up their oil and then tap into ours and keep it for ourselves.

 

[Gilligan]

Personally I think we should shutter all domestic operation, use up their oil and then tap into ours and keep it for ourselves.

? Talk about a quick way to destroy our economy...

Besides, there isn't going to be any "using it up". No matter where you look in the world, predicted and proven reserves have never been higher and keeps growing.

 

[GWguy]

? Talk about a quick way to destroy our economy....

And piss off our allies buy forcing them to get oil from OPEC.

 

[Gilligan]

And piss off our allies buy forcing them to get oil from OPEC.

Yep. We're poised to become the dominant player in the petro-energy sector. As soon as all the new LNG export facilities are on line and we also start exporting crude, we'll be in the cat bird seat globally.

 

[itsbob]

Apparently fracking technology has improved so much over the past several years, OPEC can no longer alter production rates to drive down prices and crush fracking.
I remember when the break even price was in the 70's - now it's below 40. We're now producing about as much oil as we've ever done.

What's interesting is there is an Oil Museum outside of Oil City PA that (I think) simulates the original fracking technique used over 100 years ago.

Up in NW PA you can hear tales of the unfortunate Nitro Wagon disasters (and there were a lot).. Nitro Wagons were used to transport Nitro to the oil fields so they could "frack" the wells that stopped producing or were producing slower than they should..

A sizable charge of Nitro down a well... BOOOOOOM.. and walllah.. more oil.

I never heard of any environmental type issues.. Oil in wells.. Polluted lakes or rivers (from fracking) just huge transportation issues.

 

[SamSpade]

What's interesting is there is an Oil Museum outside of Oil City PA that (I think) simulates the original fracking technique used over 100 years ago.

My best friend in high school has a daughter who got her degree in Petroleum Engineering. He has all kinds of interesting stories to tell, not the least of which is the physical rigor it requires.
You'd think she signed up to be a Navy SEAL.

But when people argue with him on Facebook regarding fracking, she sometimes pops in sets the record straight.
Fracking has been around a long time.