quote:

Fracking has increased the supply. While not a new process, technological advances over the past 15 to 20 years have made the process much more cost effective. And it recovers far more gas from depleted wells than it does oil.

Greater supply generally means lower prices.

but all the new safety regulations make it so much harder to do business in the O&G industry and since the demand for natural gas is so low, how can they afford to stay in business?

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Posted by yellowfin

Coastal Bar

Member since May 2006

97771 posts

Posted on 6/18/14 at 12:41 pm to tgrbaitn08

fracking is mostly land and new regs are offshore from what I understand

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89716 posts

Posted on 6/18/14 at 12:42 pm to tgrbaitn08

quote:
but all the new safety regulations make it so much harder to do business in the O&G industry and since the demand for natural gas is so low, how can they afford to stay in business?

Well the regulators are trying - but these are old wells - they don't have to be redrilled, just reopened.

But there are all kinds of anti-fracking propoganda products coming - particularly from Hollywood. The price of NG will increase, and be artificially increased, due to regulations.

However, NG prices will not directly impact the cost of a barrel of oil - the cumulative effect of government regulations does - and gasoline taxes directly affect the cost at the pump.

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Posted by Thib-a-doe Tiger

Member since Nov 2012

35554 posts

Posted on 6/18/14 at 12:44 pm to tgrbaitn08

quote:
but all the new safety regulations make it so much harder to do business in the O&G industry and since the demand for natural gas is so low, how can they afford to stay in business?

It doesn't make it harder, just more expensive for the end user. Do you understand the concepts of business?

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