Owl: Saudis Killing Fracking – No Floor Price in Sight for Oil

05 Energy, 08 Wild Cards
Who?  Who?
Who? Who?

End of Fracking Revolution May Be Very Near

The recent drop in oil prices is not likely temporary, as indicated in this article. That’s because the real target of OPEC is widespread fracking operations in North America and elsewhere, which OPEC appears to regard as enough of a threat to the oil industry to require drastically lowering oil prices over the long term, and this will kill the fracking industry, a development to be seen as good news to those who believe fracking is a threat to the environment:

The next few months could be some of the most defining ones in the whole of the hydrocarbon era. If that sounds like hyperbole, think again. The Telegraph reports that the Arab states of OPEC are preparing to “crush US shale”, in their strategy to counter the shale gas revolution headon. “The strategy will not change,” the Energy Minister of the United Arab Emirates, Suhail bin Mohammed al-Mazrouei, said this week “We are telling the market and other producers that they need to be rational.”  He predicted that it could be years before prices stablise, adding: “We are passing through very interesting times”. He finished by saying that he felt it was unlikley that will see a sudden rise in oil prices.” The price drop threatens to re-write the energy landscape in the US. The oil price plunge is already hurting, with 35 horizontal fracking rigs idle last week in North Dakota and Texas fracking hotspots, the biggest single-week drop since the drilling boom started six years ago.”

More:
OPEC Wants to “Crush US Shale”

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No floor price in sight for oil