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They quit drill baby drilling. But.... the wells that did get drilled are pumping
away.
A fracked well has to be refracked almost continually to continually produce so such wells have a brief lifetime that is best estimated in months rather than years or decades. Business doesn't spend 50-80 dollars for oil it can only sell for 50 dollars or less so its going to get mighty quiet in the Eagle-Ford or Bakken oil plays!
Fracking has been around for well over 60 years and it will continue. There aren't any "mass layoffs" ... YET in the Permian Basin or Eagle Ford fields (these are the Texas fracking areas). There IS a decline in Oil/Gas related stocks and they will be volatile for a while, or at least as long as Saudi Arabia can keep pumping fast and cheap. Your own links say that the "layoffs" are both Global and in the Oil Services industry - that's because they work on futures and are not 'hedged' the way that the Oil Companies are. US employment in Oil Services has plateaued, as opposed to frantic growth. Layoffs are in their corporate Global divisions and exploration/leasing. Most of the big players in the Texas fields can run lean and can switch between Natural Gas and Liquids.
Add to all that -- Texas certainly remembers the 1987 Bust and prepared for it. There will be a lot of buying opportunities for those who know or at least basically understand the business. Bit of advise - don't get your "oil industry news" or investment advise from Alternet. Stick with the experts. The Dallas Morning News headline says "Bust", but the article is not about a "bust" I'm going with T. Boone.
Of course there will be a slow down in fracking when OPEC cranked up supply and now crude oil is down to below 60 a barrel. If that lasts, then yes, fracking will take a back seat. My guess is that these OPEC nations have already built in government budgets where the price of oil has to be a good deal higher then where it is now. If it goes back up. Fracking will take off again.
I agree this is bad news for the country unless you're an EPA nutjob. Gas prices could very well go back up. I'm in the Marcellus area and production has been cut back some here as well but I'm not aware of any mass layoffs.
I agree this is bad news for the country unless you're an EPA nutjob. Gas prices could very well go back up. I'm in the Marcellus area and production has been cut back some here as well but I'm not aware of any mass layoffs.
Cheaper gas is not bad news to the country, its bad news to parts of the country, and great news to other parts.
Cheaper gas is not bad news to the country, its bad news to parts of the country, and great news to other parts.
All the jobs created in the last 5 years, have been in Texas and the Dakotas, in the oil industry.
My wifes brother works for a company and his job is to drive around and check the level of fracking chemicals, and inputs that info into a laptop, for $88,000 a year.
Even @ over $100,000 a year, $5,000 signing bonus, full benefits and home at night, they cannot find enough CDL drivers with a Haz-Mat cert.
Please I just heard the man on tv say gas is gonna be $5.00 a gallon and it isn't going to take long!
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