Fracking Can't Bring Down High Prices On Which It's Reliant

AtomicPiss

https://realclearmarkets.com/articles/2022/03/11/fracking_cant_bring_down_high_prices_on_which_its_reliant_820192.html

WestlinnDuck

What is, I'll take $65 a barrel for a $1000, Alex. Which is way down from the $120 a barrel it hit a short time ago. The issue is let the market decide when they want to drill and frack. Banning new leases, pipelines and fracking is not a market decision. It's pure politics. Fracking produced $45 a barrel just a couple of years ago. The article says this can't be true. But it was and I'll take it.


"It's not true simply because the lower oil prices that fracking is said to be capable of producing would bankrupt every fracker in the United States. Yes, you read that right. Innovative as fracking is, the oil exploration technique generally requires a price per barrel of oil north of $50 to make even the barest of economic sense."

MikeDamone

Hot take:


President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”

https://thehill.com/policy/energy-environment/159705-obama-more-drilling-is-not-the-solution

11 years later and it’s Putin’s fault.

WestlinnDuck

MikeDamone said:

Hot take:


President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”

https://thehill.com/policy/energy-environment/159705-obama-more-drilling-is-not-the-solution

11 years later and it’s Putin’s fault.

The biggest break for independent drillers is that they can expense the cost of drilling a well. That doesn't apply to vertically integrated oil companies like Exxon Mobile. FWIW, any manufacturer can expense their new equipment. The myth of special tax breaks for big oil is a lie. You can verify that because if barry says it, it is a lie. As I said, we already drilled our way to lower energy prices and the article says we can't do it again - because ...

UW_Doog_Bot

WestlinnDuck said:

What is, I'll take $65 a barrel for a $1000, Alex. Which is way down from the $120 a barrel it hit a short time ago. The issue is let the market decide when they want to drill and frack. Banning new leases, pipelines and fracking is not a market decision. It's pure politics. Fracking produced $45 a barrel just a couple of years ago. The article says this can't be true. But it was and I'll take it.


"It's not true simply because the lower oil prices that fracking is said to be capable of producing would bankrupt every fracker in the United States. Yes, you read that right. Innovative as fracking is, the oil exploration technique generally requires a price per barrel of oil north of $50 to make even the barest of economic sense."

Once the initial payback on the well is hit break even is even lower. Hence why producers managed even into the low $30 area.

46XiJCAB

UW_Doog_Bot said:

WestlinnDuck said:

What is, I'll take $65 a barrel for a $1000, Alex. Which is way down from the $120 a barrel it hit a short time ago. The issue is let the market decide when they want to drill and frack. Banning new leases, pipelines and fracking is not a market decision. It's pure politics. Fracking produced $45 a barrel just a couple of years ago. The article says this can't be true. But it was and I'll take it.


"It's not true simply because the lower oil prices that fracking is said to be capable of producing would bankrupt every fracker in the United States. Yes, you read that right. Innovative as fracking is, the oil exploration technique generally requires a price per barrel of oil north of $50 to make even the barest of economic sense."

Once the initial payback on the well is hit break even is even lower. Hence why producers managed even into the low $30 area.

Exactly.