Fracking increases the amount of natural gas which is a competitor to oil. loads of companies are investing in Fracking Equipment; Land and Lobbying for lower taxes on Natural Gas. Fracking is far more expensive than drilling for oil. When the price of oil was skyrocketing Fracking looked like a good alternative to expensive oil. So the House of Saud lowered the price of oil. Just like clicking a light switch Fracking got too expensive. That should please the Environmental Whacko’s until they caught on to the increase in the use of oil.
The cost of transporting Canadian crude oil to Texas Refineries in a pipe is cheaper than carrying it in railcars or trucks. But building the pipeline is another matter. The return on their investment was suddenly decreased by the clever Saudi’s. Maybe it’s still a good bet to build the pipeline but the return on the investment is far longer with lower oil prices.
Ditto for wind power, solar power and even hydraulic power plants where the electric generators are powered by falling water. It still costs money to maintain them too. All those methods got more expensive when the House of Saud dropped the price of oil.
Views: 7
