As the global markets feel the tremors this week from the coronavirus and the announcement of a major drop in oil prices, some U.S. producers are now having to tighten their belts. Will they survive the oil global glut?
With all the hype around American “energy independence” in recent years, few in mainstream energy circles have dared call-out the underlying exposure and structural weakness of the unconventional oil and gas industry – which must guarantee a certain price per unit or barrel in order for producers to turn a profit. At these present levels, the industry is heading for a collapse. Economist Richard Wolf explains:
“Fracking is very expensive… but everything was premised on the notion that the price of oil would stay very high,” Wolff says. “The Saudis and the Russians were hurt by the emergence of the American fracking industry; they’ve hated that industry from day one because it’s a competitor.”
Boom Bust hosts speak with Professor Wolf about the impending crisis in US fracking industry. Watch:
.
READ MORE FRACKING NEWS AT: 21st Century Wire Fracking Files
SUPPORT OUR INDEPENDENT MEDIA PLATFORM – BECOME A MEMBER @21WIRE.TV