Lower oil prices, Natural Gas Prices are now the enemy???
Every previous economic downturn in America after WW2 was linked to if not directly caused by higher oil prices until now. Fracking does not make money but if the price of oil and natural gas go down as is expected then the Fracking industry’s losses will increase and take down our economy. Fracking has always been make work a way for private industry to finance a culture dependent on consumption and they of course make a profit off of selling us oil, gas, natural gas etc for us to consume. Never mind Fracking loses money the 1% don’t pay if they lose money we do.
$4 is the break even point for Fracking. Natural Gas
Right now Natural Gas prices do not matter much Winter is when demand for natural gas is highest a cold Winter increases demand for natural gas. A warm Winter and fracking for natural gas does not make money. Last Winter was the first time the winter was cold enough for Fracked Natural Gas to actually sell above the break even point.
Fracking for oil however was making money at least as long as long as oil was above $80 a barrel But that is likely to change very soon.
“At $80, I suspect a third of planned tar sands projects would not be funded and if it fell $20 more, it would probably slow drilling in shale, that is, fracking,” said Jon Gabrielsen, president of J.T. Gabrielsen Consulting.
Adding to that expectation was news Thursday that Saudi Arabia — the dominant oil force in the Middle East — has been hinting it is ready for a price war.
Why would the Saudis increase oil production well both to stop Fracking they are scared it might one day make a profit and to stop green energy which they know works after all why buy a Prius hybrid car if gasoline is less than $2 a gallon?
Oct. 4, 2014
Amy Jaffe, executive director for energy and sustainability at the University of California, Davis, notes that U.S. oil production is still “outperforming expectations.” Were it not for the prospect of more Mideast turmoil, says Jaffe, she would forecast a price-plunge to well below $75.
Barron’s is not some Green Energy Hippie blog they are put out by the Wall Street Journal which is owned by Rupert Murdoch if they think oil could go below $75 a barrel if we were not fighting in the middle east I believe them. Some are even saying oil could go to $75 a barrel this November.
In the past five years, the five largest oil-producing states have added more than 1.35 million jobs — roughly 16 percent of the jobs added by the nation as a whole. And they account for 32 percent of all the private sector jobs.
Thank God Obama is ready to go to war with Russia (who supplies Europe with oil and natural gas) over the Ukraine and ISIS while at the same time arming Syrian rebels even after Iran said last year any attack on Syria would be taken by Iran as an act of war.
A drop in oil and natural gas prices could threaten 16 percent of all private sector jobs! Our economy can’t absorb a loss like that! Drill Baby Drill More Wars for Oil! Never Mind Fracking costs more than you get selling the energy even at current prices! The Government will bailout the banks again its all good!/s (sarcasm)