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>There are multiple transmission line projects in progress in the US to drag wind energy to major load centers. Sure, but not to Europe and Asia. http://www.r

>There are multiple transmission line projects in progress in the US to drag wind energy to major load centers. Sure, but not to Europe and Asia. http://www.reuters.com/article/usa-asia-lng-idUSL1N1FE4BG http://www.reuters.com/article/usa-asia-lng-idUSL1N1FE4BG

crdoconnor 9y ago
That sounds like a way to lose a lot of money. Fracking in the US is heavily leveraged and often running at a loss: http://wolfstreet.com/2015/07/21/its-happening-debt-is-tearing-up-the-fracking-revolution/ http://wolfstreet.com/2015/07/21/its-happening-debt-is-teari... ...and that's before you take into account the massive cost of shipping it across an ocean. By contrast Russian gas is already very profitable and shipped through a pre-existing network of pipelines to Italy. Even if the numbers work now it clearly doesn't take into account the fact that Russia can undercut them forever. It reeks a little of desperation.
- saryant 9y ago
  Leveraging to the hilt and operating at a loss is par for the course in the oil industry. It's very common, especially when new plays open up, either from technological or political advances. In the case of fracking, everyone was scrambling to get extraction rights on any piece of land that looked promising. Often that involved massive speculation and debt. Inevitably the downturn comes and shakes out the players who don't have the capital or discipline to survive. The industry consolidates and production continues. The cost of fracking has continued to decline as frackers learn how to be more efficient in order to be profitable with crude prices at their current low levels. Even if the current players went bankrupt, others will pop up once prices rise again. American frackers have effectively replaced Saudi Arabia as the world's swing producer. Unfortunately for them that means learning how to withstand wild boom-and-bust cycles.

crdoconnor 9y ago

That sounds like a way to lose a lot of money. Fracking in the US is heavily leveraged and often running at a loss: http://wolfstreet.com/2015/07/21/its-happening-debt-is-tearing-up-the-fracking-revolution/ http://wolfstreet.com/2015/07/21/its-happening-debt-is-teari... ...and that's before you take into account the massive cost of shipping it across an ocean. By contrast Russian gas is already very profitable and shipped through a pre-existing network of pipelines to Italy. Even if the numbers work now it clearly doesn't take into account the fact that Russia can undercut them forever. It reeks a little of desperation.

saryant 9y ago
Leveraging to the hilt and operating at a loss is par for the course in the oil industry. It's very common, especially when new plays open up, either from technological or political advances. In the case of fracking, everyone was scrambling to get extraction rights on any piece of land that looked promising. Often that involved massive speculation and debt. Inevitably the downturn comes and shakes out the players who don't have the capital or discipline to survive. The industry consolidates and production continues. The cost of fracking has continued to decline as frackers learn how to be more efficient in order to be profitable with crude prices at their current low levels. Even if the current players went bankrupt, others will pop up once prices rise again. American frackers have effectively replaced Saudi Arabia as the world's swing producer. Unfortunately for them that means learning how to withstand wild boom-and-bust cycles.