…Fracking has Benefitted Everyone…
The recent attack on Abqaiq would probably have seen $100+ oil if it hadn’t been for fracking and the resulting growth in oil production in the United States.
The 7 mm bbl/day of extra oil produced by fracking in the United States (12.2 mm bbl/day in 2019 vs 5 mm bbl/day in 2005) allowed the world to shrug off the attack.
While Abqaiq may take months to fully recover, the world will be able to get by without $100+ oil.
But this isn’t the only example of how fracking has helped everyone.
Fracking has created a surplus of natural gas.
In 2005, supplies of natural gas in the United States were diminishing, import terminals were being built and natural gas cost around $9 per mm BTU. But, because of fracking we now have an abundance of natural gas, and it’s cheap, costing less than $3.00 per million BTU at the Henry Hub.
In addition, LNG from the United States has upended the LNG market worldwide. What used to cost $16 per million BTU in Asia, and $14 in Europe, now costs around $5 per million BTU. All because of fracking.
Natural gas is nearly pure methane, which some people want to get rid of because of global warming.
But there is little real threat from global warming or climate change, while natural gas provides cheap electricity and cheap heating for millions of people around the world.
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