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Showing posts from February, 2015

Buy into renewables

Photo: Stephen Jones

The fracking industry in the US is on the verge of collapse, with oil prices plunging 50 per cent in eight months, thanks to Saudi Arabia’s unexpected decision to sell its oil cheaply.

There are now not enough buyers to mop up excess fracked gas and oil, which are produced together, causing frackers to halt the drills – low profits mean they risk bank loan defaults.

Shale-well drilling company Stone Energy has reduced the number of fracking wells it will drill in the Marcellus Shale region, and it’s not the only one. Goodrich Petroleum, BHP and EQT are also becoming less active. Across the US, shale gas fracking is shutting down.

Would-be fracker Centrica, which owns rights to frack in Britain (gained from Cuadrilla Resources) says lower oil prices will hurt profits from its drilling-fields this year, which may prove a strong disincentive to its British fracking plans.

Oil prices all over the world move in tandem. Similarly, frackers are at risk when low public d…