Who’s Fracking What?

Wonder why gas prices are low nowadays?

It seems Fracking has a lot to do with this phenomenon.

Fracking, or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep within the earth. Read more about Fracking at  http://www.what-is-fracking.com/.

 

This is how they Frack. Image from www.biggerpieforum.org

The Fracking revolution in the United States has been cited as the cause of lower crude oil prices in 2014. See the graphs from the Motley Fool website.

However, in 2015, these low prices may eventually put pressures on Fracking as firms struggle with lower profitability. It seems that Fracking is becoming a victim of its own success.

 

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Published by

Finance, M.D.

Finance, M.D. is a practicing physician who dabbles in finance and investment. He has passed all three levels of the Chartered Financial Analyst (CFA) exams, all in his first attempts. thefinancemd.com

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