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i was convinced fracking put in a price ceiling on a barrel of oil at around $75. Where are they?? There's been enough time to bring capacity online and there's
by chasd00 4y ago
i was convinced fracking put in a price ceiling on a barrel of oil at around $75. Where are they?? There's been enough time to bring capacity online and there's plenty of money to be made uncorking the wells. Did opec buy all the wells and are just leaving them offline? I can't figure out why the frackers aren't pumping in full force.
- vidanay 4y ago"Supply chain issues" (I wish I was joking - we are going to be hearing that excuse for the next decade)
- exhilaration 4y agoThe New York Times did an article on this: https://nyti.ms/3mFPBue https://nyti.ms/3mFPBue American energy production has only inched up because executives fear that oil and gas prices won’t stay high.
- tyrfing 4y agoBecause the survivors are risk averse. 2 years ago people were cheering as they proclaimed the death of oil and companies with ~ 60 billion in debt went bankrupt. Now the Fed is pushing the economy into recession (lower demand) and high oil prices are policy-driven (Russia sanctions), mostly from displaced supply. Investing heavily in this environment is risky. https://apnews.com/article/russia-ukraine-politics-business-china-middle-east-b6a90423ee7e2245e3eafc713083896f https://apnews.com/article/russia-ukraine-politics-business-...
- drugstorecowboy 4y agoThats an absolutely excellent point. Maybe the cost to start/stop fracking is too high AND/OR they don't think this will last long enough to justify getting started. Otherwise you are very correct yet I have seen no evidence of a sudden fracking boom. Very very interesting...