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i still have the feeling that the next big bust will come from the fracking industry by 2020. The reserves are vastly overestimated, profitability muddled by fi
by bigodbiel 8y ago
i still have the feeling that the next big bust will come from the fracking industry by 2020. The reserves are vastly overestimated, profitability muddled by financially wizardry, and capital flow about to get squeezed as interest rates rise.
- greedo 8y agoFracking is actually far more resilient to market swings than traditional oil fields/wells. If prices for crude/natural gas drop, you just shutdown the well. Spinning it back up is far faster and cheaper than normal wells.
- alach11 8y agoI work in the O&G industry and I think this is backwards. You're far more likely to see conventional wells be choked back or shut-in during price drops. That is what we saw in the recent oil price drop. With unconventional wells (horizontal fracked wells) decline rates are so high that you will see a dramatic decrease in production by simply stopping drilling of new wells.