U.S. shale gas producers beat OPEC soundly through innovation in hydraulic fracturing and horizontal drilling techniques; a continuing shale revolution.
One of our readers just sent me a wonderful article from a news site called Lima Charlie News. I was not previously aware of the site but it’s one I’m bookmarking due to the quality of this particular post entitled “Fracking, BREXIT and An Oil and Gas Shale Bonanza,” which was authored by Dr. Gary K. Busch. As the title indicates, it’s focused on the UK and the special needs and opportunities representatives by their move to develop their shale resources. It’s worth reading for that alone, but there’s another story within the story and it’s all US fracking innovation and how beat an OPEC determined to lowball price us out of existence as competition.
The lessons learned in the production of fracked oil and gas in the U.S. were that in order to compete with OPEC’s desire to drive the U.S. industry to its knees it would lower the oil price to make fracking uncompetitive. Instead of folding up their hands, U.S. producers innovated new processes and introduced new technologies which drove down costs. Now, OPEC cannot compete and is fighting a losing battle to drive out U.S. frackers. The U.S. will be self-sufficient in energy by late 2019