The Pros And Cons Of Fracking

The oil producing nations in the Mideast currently are meeting to discuss increasing production so that crude prices will decline from its current price of more than $30 a barrel to the region of $25 (Georgy, 2000).

Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.

The energy industry is not any different than most commodity-based industries as it faces long periods of boom and bust. Drilling and other service firms are highly dependent on the price and demand for petroleum. These firms are some of the first to feel the effects of increased or decreased spending. If oil prices rise, it takes time for petroleum companies to size up land, setup rigs, take out the oil, transport it and refine it before the oil company sees any profit. On the other hand, oil services and drilling

The debate over fracking cannot simply be limited to the discussion of environmental impact and health concerns. While these subjects are critically important to our future, so is the economic stability of the United States and its energy security that has been a point of major concern for decades. Until recent years, the hydrocarbon industry has been lead by Middle Eastern OPEC nations, and by natural gas production in places like Russia. For the last three consecutive years, the United States has

fluid 8,000 feet into the ground to extract oil and natural gasses from shale plays. Although fracking has been around for nearly 60 years, the controversy surrounding it didn’t begin until approximately 2008, when oil and natural gas in the United States hit an all-time low. As a result, we depended heavily upon other countries like Saudi Arabia for our oil. The situation was less than ideal and the U.S. was seeking new ways to gain independence. On December 19, 2007 the Energy Independence and Security Act was signed into legislation thus, marking the beginning of the search for natural gas and oil in the United States otherwise known as the “Fracking

Fracking can extract a large amount of resources compared to other methods of exploitation that we used before. Since 2013, production of natural gases in the United States has been climbing rapidly, especially in shale gas. Shale gas has driven U.S production to a record level. In 2010, it is recorded that 1 million of barrels of oil per day are produced. But in 2013, the year with booming application of fracking, the generated barrels of oil per day were tripled, approximating 3 million daily. It could be deduced that more drilling rigs had been installed during the 3-year interval. However, the increase in the number of rigs was not enough in explaining the leap in production of resources. It was the new technique, fracking, that expanded the oil and gas industry in the US. In addition, fracking might be a temporary method to solve the problem of soaring demand for energy. Depletion of resources is posting a great concern for many countries, including the US. Massive U.S industry nowadays is having a huge demand of energy. By using the modern Fracking techniques, oil and gas producers are now able to exploit resources from hard-rock formations deeply under the ground, which they could not do previously. This solidify our hope that by using Fracking, the energy industry of the U.S is no longer suffer from the lack of

The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.

The fracking industry has been a highly lucrative venture for the United States. Through the use of hydraulic fracturing, commonly known as fracking, vast amounts of natural gas and oil, once inaccessible, have become attainable. When the gas prices sky rocked in the United States, it was the use of this fracking technique that effectively drove prices down keeping this precious commodity affordable for American consumers. Despite the benefits to be reaped, moratoriums have been created to hinder the usage of hydraulic fracturing

Fracking also does us some good things to bolster our oil/natural gas standing in the world economy as well as nationally. As of now, hydrofracking has the potential to push our oil and natural gas supply beyond what it is now(Pros and Cons of Fracking) and possibly create a surplus that will last decades. Like other big industries, it creates much-needed jobs that millions of people will need to be able to sustain themselves(Pros and Cons of Fracking). While it is unfavorable among the people, it is, indeed, buying time for the renewables to develop to a point where they can be put into place and steadily replace fossil fuels as a whole(Pros and Cons of Fracking). Natural gas plants could replace coal powered plants and reduce carbon emission

However, investors are becoming increasingly more cautious as the conditions concerning world oil selling prices continue at current levels; potentially creating upward pressure on capitalizations rates as the year progresses. According to this specific Colliers report, Canadian oil producers will be hardest hit, losing around (US) $40 billion in revenues last year, taking a cost on business expenditure and corporate business earnings, with some industry players deciding to cut their growth capital expenditure budgets this

Since June 2014, oil price has fallen by more than 70 percent. Price has recovered few times last year. However, it has sunk this year to levels not seen since 2003 (New York Times, 2016). This drop of price has affected several firms in the industry which we can mention Chesapeake (CHK). In fact, Chesapeake was quoted at more than $20 until late 2014. Today, it is priced below $5. The oil industry is known for its history of booms and busts. It is not the first time that this industry is shaken. In the 1985-86, supply-driven mainly caused the fall of prices. In 2008-2009, price fallen was entirely due to the collapse in demand. However, this reason behind this recent crisis is a little bit special: “price decline appears

OPEC had been successful in heavily influencing settling price in the oil industry prior to the oil shock of 1973. This event gave outsiders the opportunity to explore alternatives to oil resources and subsequently reduced the market share that OPEC

Many factors within and outside of the United States have supply and demand affects on the supply of oil. There are factors within the United States that affect the supply and demand of oil, and there are factors outside of the United States that affect the supply and demand of oil. Based on the analysis of each of these categories of factors, I predict oil prices within and outside of the United Stares will definitely rise.

With the continued increase in the demand for oil, the financial future for OPEC looks very secure. So, what about the members, certain countries production will have to decrease while other foreign countries may have to increase their production. OPEC should continue to strive to look for ways to be environmentally friendly and ways to keep up with the demand without increasing the cost to the consumers. If things remain the same the price of crude oil will continue to rise to the point that the supply may be more than the demand as we continue to look for alternatives to crude oil.

5 in ESCWA (2009)). In an attempt to curb falling prices, the Organization of Petroleum Exporting Countries (OPEC) introduced a series of cuts in output. At the time of writing, oil prices have begun to stabilize at levels ranging in the mid US$ 40 per barrel and also there was withdrawal of investment from foreign investors or huge capital outflow