Fracking is Worth it When Oil is Expensive

Monday, February 2, 2015

"Fracking is not cheap and the Saudis know it," says an article in Addicting Info. "We’ve known how to get at shale oil for a very long time but it wasn’t worth the effort. It’s difficult and expensive. But when oil prices flew over $100 a barrel, it became more than worth it to tap that hard to reach crude. American oil production skyrocketed, not because of any Republican or Democratic policies, but because the oil companies were able to make a profit.

"But that only works if the price of oil stays high. From its all time high of $143.72 per barrel in June of 2008, the price has plummeted to $46.97. Fracking isn’t quite so profitable anymore. In fact, a number of fracking sites are closing down and jobs are disappearing in oil rich states like Texas.

"Now, the upside to this is that countries like Iran and Russia are going to suffer greatly, thus curtailing their more anti-social tendencies. It’s hard to be a regional power when your economy is collapsing."

But the bad news is that if Saudi Arabia can successfully suppress the fracking industry in America, they can then go back to high oil prices with less competition...and they also use their wealth for anti-social activities.

All of this nonsense could stop, and we could get off Saudi Arabia's economic roller coaster if we only had a brain. If we had robust fuel competition in America, everything would change.

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