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Frack Alack
Why Shale Fails Abroad
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  • rheddles

    How can one write

    So, to recap, shale is failing around the world because of any and all of the following reasons: complicated geology, byzantine regulations, virulent local protests, under-built infrastructure, smaller pools of capital, and most recently a plunging price of oil that’s made all of these bets look a lot shakier.

    after noting

    Unlike the rest of the world, America affords property owners the rights to what’s underneath their property as well as what’s on the surface.?

    Our geology is not unique. Others, if not all, have sufficiently similar geology. If the EPA’s regulations are not as byzantine as as anyone else’s it’s not for lack of trying. Virulent local local protests? There’s a reason no one fracks in New York. Under built infrastructure? Clearly you’ve not been to the Marcellus shale region. I suspect North Dakota is as bad if only flatter. Smaller pools of capital? Chevron, ExxonMobil, and Royal Dutch Shell are not bit players. Plunging price? That will slow things down but not stall them. Look at the US.

    So what does that leave us with? Private property and competitive enterprise. It’s the culture, baby.

  • S.C. Schwarz

    Don’t worry, Obama will level that playing field soon enough. The administration’s anti-fracking rules are just out and they are only the beginning. Up until now, with the price of oil high and a congressional election to worry about, Obama has largely left fracking to the states. But now the price of oil is down, Obama doesn’t have to run again, and he only has two years to leave more of his awful mark on history. I predict he will use that time to do everything he can to further cripple the energy industry in the US.

    Actually, considering the damage he is doing in the Middle East, and in foreign affairs generally, energy is the least of our worries.

  • gabrielsyme

    Once again, TAI ignores the success (though on a smaller scale) of fracking in Canada. There are significant differences between Canada and the US, but it is simply not the case the US has been completely alone in successfully exploiting the new oil and gas technologies – it’s a North American thing.

  • mikekelley10

    I live near the Bakken formation, at least by Montana standards. Something the media tries to hide is the huge area that benefits from oil production. Many people from our area have gone over to Eastern Montana and North Dakota to work. They have made much better money over there than they can here. The oil business has boosted many businesses as far away as the Billings, Montana area as well. The real estate business, car and truck dealers, and steel fabrication companies around Billings have thrived in the years of Bakken exploration and production. Democrats who fight shale are doing a huge disservice to their working class citizens, as usual.

  • Terenc Blakely

    “but if these failures tell us anything, it’s how truly remarkable the American energy renaissance has been.”

    All the more impressive if you factor in a hostile administration, media and nutball luddite activists.

  • FrancisChalk

    “Why Shale Fails Abroad?” I can answer that in one word: Socialism.

  • richard40

    Obama tried to kill shale in the US as well, but fortunately our private lands have enough property rights that he could not succeed. Public lands are a different story.

  • megapotamus

    But with time the American products will fall in relative costs due to the advantages of the installed base and being the origination point, apparently, of nearly all the related tech. Peak oil, indeed. I recall that in the ’80s the shale pioneers said they could break even at a consistent $14 a barrel, then nearly twice the market price. Now at $50 they are putting the competition out of business? THAT is progress. Forward.

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