3 ms·

> I think you're underestimating how much oil we discovered through the fracking process. I thought the primary output of fracking in the US is natural gas, no

• salty_biscuits 7y ago
  They are probably getting mixed up with shale oil, which isn't price competitive at the moment. Geopolitics has more of an influence on the current oil price.
• dragontamer 7y ago
  Fracking Oil Wells are estimated to become profitable again at $60 / barrel (depending on the well of course, but roughly around there). Which means that for the foreseeable future... ie: as long as Fracking Oil wells remain in a state of "DUC and cover" (drilled but uncompleted)... oil will likely remain under $60 a barrel. Only if global oil consumption grows enough such that all the DUC-and-covered wells become operational will the market be in a position where the price of oil can grow significantly above $60/barrel. Either way, the $90+/barrel prices of the 2007-era probably won't return anytime soon.
  • aussiegreenie 7y ago
    BTW - Fracking has NEVER been profitable. It is just the losers are the debt holding in companies. And for the same reasons, VCs keep subsidising lost making companies (WeWork / Lyft etc). "We lose money on every sale but we make it up on volume" Bondholders have lost about a hundred Billion. It is crazy but frackers keep get capital effectively for free.