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> Oil prices aren't particularly low by historical standards. True. But I think that fracking only became financially viable (or at least, plausibly so) when o
by mirimir 8y ago
> Oil prices aren't particularly low by historical standards.
True. But I think that fracking only became financially viable (or at least, plausibly so) when oil prices were at historic highs. Similarly for tar sands.
But there have also been subsidies, to help ensure adequate domestic production. For the oil and natural gas industries overall.
And this will be the go-to technology as traditional oil and gas reserves dwindle. At least for petrochemicals.
- xref 8y agoShale became economically viable due to fracking, whereas previously shale had to be steam heated to release the oil which is extremely energy intensive and thus expensive, which is why Shell tried it in the 70s but abandoned the tech.
- hermitdev 8y agoFracking is a more expensive means of extraction than traditional drilling. IIRC, the oil is also of lower quality. I dont recall the precise price, but fracking is only profitable if crude is over ~$80/barrel.
- CuriouslyC 8y agoThe number for at least one major petrochemical company is closer to $30/barrel