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>this will cause the price of natural gas to spike If you drive US frackers out of business, you'll also spike oil prices. Fracking has added so much supply to
by jdhn 7y ago
>this will cause the price of natural gas to spike
If you drive US frackers out of business, you'll also spike oil prices. Fracking has added so much supply to the world that it's turned the US into an oil exporter on occasion[0]. Removing that much supply from the markets would cause it to tighten, and by doing so would make fracking viable again.
[0] https://www.cnn.com/2019/03/08/business/us-oil-exports-saudi-arabia/index.html https://www.cnn.com/2019/03/08/business/us-oil-exports-saudi...
- toomuchtodo 7y agoThe lag time is all that's needed (spike, price plateau, drop in price). Utilities need stable prices due to rate setting policy between them and the PUC (although some jurisdictions are more friendly to floating fuel prices passed through to consumers than others), so you take advantage of the price volatility while the domestic O&G market is in turmoil, and producers and well developers are going bankrupt or otherwise having their operations disrupted by the macro environment. Doesn't matter if the price of nat gas declines again if you've already built the batteries and renewables.