Have you been excited by lower gas prices , I was, but didn't expect it would be done by our government in a secret deal with Saudi to flood the market with oil to make the prices drop. A favor to us , not hardly! It was done to put the hurt on Russia and Iran by decreasing their income from low oil prices. So of course all countries are forced to pump more oil to meet their bills.
Shooting your foot. What these rocket sleds didn't see was the lower oil prices will essentially kill fracking as a production process. Already a poor return on investment fracking wells will cease to be useful.
With most of the sweet spots already drilled and output falling at a astounding rate , punching more holes just to keep up will become impossible. The money to finance them will disappear as the riskiness of getting your invest back gets slimmer and slimmer.
For a glimpse of the economics behind all this read this article .
As readers if this blog know I have been harping on the bullshit story of a 100 year supply of fracking gas , and the destruction of the environment it causes by destroying water sources for years. For a country to putt all it's card on such a fragile technology is very difficult to understand. Just another short term scheme to generate a few bucks.
It gives me some pleasure that I have been able to point the finger ahead of time at an obvious hoax on the people once again. When the PTB finally figure out they have screwed up they will have to turn to Nuclear power to meet our future needs. As the fossil energy is used up or is made unaccessible the evident need for another power source will become obvious. The remaining sources are limited at least at this time leaving only nuclear plants as the solution. Yeah I know you are all scared by
Fukushima but many improvements on design have come as a direct result of that accident. Peaks at the new design give me even more confidence that the new reactors on the drawing board and some already under construction will reliably fill our power needs of the future.