Falling Oil Price slows US Fracking By STEVE AUSTIN for OIL-PRICE.NET, 2014/12/08 Recent falls in oil prices alter the financial dynamics of oil extraction. Certain sources of oil entail lower costs than others. For example, conventional pumped oil extraction in high pressure onshore wells costs relatively little to set up and operate, whereas remote oil fields beneath icy seas require specialized equipment and override wages to locate and extract. When the oil price rises, more difficult oil fields become economically viable, when the price falls, the margins of extraction remove the viability of certain sources. Hydraulic fracturing in the United States has provided an unexpected source of oil. However, it has contributed to an oversupply that could soon cause fracking production to shut down; as a matter of fact applications for new U.S. well permits dropped by nearly half last month. US oil production is slowing down because of low oil prices and today well explain the reasons for that decline and explore the solutions.
Posted on: Wed, 17 Dec 2014 09:51:42 +0000
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