Fracking The Answer To Cheap Crude Oil.
Fracking Companies are coming under increasing pressure to quit the market as they need at least $70 a barrel to justify Fracking production.
In the UK its much higher as production costs are much increased as our reserves are harder to extract, which just shows how stupid the UK Government has been in over selling this new technology.
You can’t threaten OPEC members with alternative oil and gas supplies without some sort of kickback and if Governments are going to encourage fracking its going to cost a fortune and will push frackers into receivership as they simply can’t compete against OPEC producers.
At the end of the day they are only protecting their produce although many oil nations needs over $100 per barrel just for their own countries to break even.
For OPEC to cut production its just not worth it for them they want to see a reduction in fracking period, to get the most out of the ground needs investment and a return if oil is priced under $70 fracking cant compete, so expect UK frackers to get huge tax breaks soon or its tatties for that industry in the short term.
The UK Government needs to work out if giving fracking contracts to their unionist friends is more beneficial than having a strong pound and north-sea oil and gas revenues to the benefit of all rather than the few, this may be perhaps an over simplistic view of the subject but unless there’s a rethink on policy oil prices will plummet to all time lows causing a run on the pound and a national balance of payments disaster for the UK just before a general election kind of shows they are clueless and void of all moral worth and to think how they are paid so much to not see this coming when general jo-public can see it a mile off is really scary indeed!
They need to lay off attacking the weakest in our country and get to grips with what’s really important to the country perhaps it’s just another excuse for them to say we can’t afford a welfare state let’s just get rid of it all together, thank god the Smith commission reports today, that could be another laugh in the making, but there’s all the earmarks of a public shafting already.