Fracking's Formidable Foe

The worthy foe is not environmental regulations nor the the government or public demanding fracking moratoriums and bans. It is the falling global price of oil. Two radio reports explore how the global glut of oil affects U.S. shale oil production.

2 minute read

October 16, 2014, 10:00 AM PDT

By Irvin Dawid


Oil prices have taken a nosedive. According to Tuesday's Wall Street Journal, "the global benchmark, Brent oil, dropped to a near-four-year low of $88.89 a barrel on Monday (Oct. 14), and the U.S. benchmark dropped to $85.74, a 22-month low." That's just the beginning, analysts predict.

NPR's Texas-based correspondent, John Burnett, writes (and states in the streaming version) that declining prices result from abundant oil supply and weakening oil demand, particularly from Europe and China as well as the United States.

If all these trends keep up, it's going to have a heavy impact in the oilfields in states like Texas and North Dakota, says Chris Tomlinson.

He's an energy columnist at the Houston Chronicle.

Tomlinson states, "Well, if you're considering fracking a new well in south Texas, you're going to be thinking twice about that at $85-a-barrel oil. And you're definitely not going to do it at $80-a-barrel oil. The question is, how long are the prices kept this low?"

Possibly two years, according to Reuters. Saudi Arabia, "OPEC’s largest producer, will accept oil prices below $90 per barrel, and perhaps down to $80 [in Brent prices], for as long as a year or two, according to people who have been briefed on the recent conversations," write Ron Bousso and Joshua Schneyer in a report that's also summarized in The Hill.

In the introduction to a report on energy prices in American Public Media's "Marketplace," host Kai Ryssdal states that the U.S. is approaching a "'tipping point', where a lot of the oil that we have been pumping is getting less and less profitable." David Weinberg explains.

Some regions in North Dakota and Texas — the “sweet spots” as Chad Mabry, an energy analyst, calls them — would likely remain profitable even if prices continue to drop. “I think one of the first places that you are going to see budget cuts are more on the exploration side of things.”

Bousso and Joshua Schneyer agree, writing that the Saudi policy of not reducing oil output to curtail falling oil prices "may be aimed at slowing the expansion of rival producers including those in the U.S. shale patch."

Perhaps its ironic that the marketplace, which has given rise to America's burgeoning energy industry, aided by Saudi Arabia, which has chosen not to reduce its oil production according to Reuters, may do what fracking opponents have been unable to do with regulations and moratoriumsput an end to additional fracking in the United States.

Tuesday, October 14, 2014 in NPR

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.