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There are some question marks on how sustainable the US oil boom is as the extraction methods are quite capital intensive. We are at historic low capital price
by heisenbit 8y ago
There are some question marks on how sustainable the US oil boom is as the extraction methods are quite capital intensive. We are at historic low capital price and have a fairly high oil price and still the profitability picture is not pretty.
To dig deeper see: https://wolfstreet.com/2018/08/15/shale-profits-remain-elusive/ https://wolfstreet.com/2018/08/15/shale-profits-remain-elusi...
- djsumdog 8y agoSo is most of the new oil coming from shale then? Or is a lot of it coming from hydraulic injection (fracking)?
- anonymous5133 8y agofracking is used to get oil from shale. FYI.
- 2trill2spill 8y agoFracking is the technology used to extract shale oil and gas.
- 2trill2spill 8y agoOil and Gas producers are also facing severe price discounts due to a lack of pipeline capacity in the United States[1]. One could argue that as more pipelines come on line, shale producers will start to see significantly more profits. [1]: https://oilprice.com/Energy/Energy-General/Permian-Discount-Could-Rise-To-20-Per-Barrel.html https://oilprice.com/Energy/Energy-General/Permian-Discount-...
- toomuchtodo 8y agoOne could argue that shale producer profits would be limited by efforts to restrain additional pipeline deployments.
- clumsysmurf 8y agoAnd also much more water intensive, a problem in regions under water stress already: "Water use for fracking has risen by up to 770 percent since 2011" https://www.sciencedaily.com/releases/2018/08/180815141441.htm https://www.sciencedaily.com/releases/2018/08/180815141441.h...