What's the FRACKING deal?

Fracking. It is the multi billion dollar word that most of you should know very well. Also known as hydraulic fracturing, the process uses water, sand, chemicals and pressure to crack rock deep beneath the earth's surface, releasing vast amounts of previously unattainable oil and gas.

Today, it stands as a stumbling block between the energy industry and critics who risk adding another unnecessary layer of volatility to energy markets which really don't need it.

Protests across New York State have temporarily banned the practice. Further alarmist rhetoric in nearby Pennsylvania threatens to plant a foot squarely on the throat of perhaps the most important energy extraction method in recent American history.

3 Things To Think About



1) The Hollywood Effect

Perhaps I didn't give the "Hollywood vs. Wall Street" thread enough juice. With all the mainstream media fervor against The Street and talk of "Inside Job", few of us have paid due attention to the drama surrounding "Gasland". The aggressive attacks on the energy industry have grown by leaps and bounds. Quite frankly, the industry's offense is the best defense approach has not helped much.

2) Dynegy's Potentially Impending Bankruptcy

Ask some of your pals in Houston about Dynegy. If this bankruptcy occurs, we could see a minute version of the Bear and Lehman deaths. Not in terms of the overall economic effect, but certainly as a cold bucket of ice water over the heads of the industry. Dynegy is a giant and a few years ago suggesting it's impending death at the hands of creditors would have been a notion dismissed with laughter and ridicule. The aura of invincibility is a huge yet rarely mentioned tangible of big businesses. Once it is pierced, bad things can happen... fast.

3) Apply to...Glencore, Vitol, Trafigura...

I mention it in passing quite often, but am really considering ranting on it full-time. It amazes me how many posts I read on a daily basis where people obsess about getting into trading arms and prop shops. You guys really need to think about oil trading firms such as those mentioned above. Once again, big oil and oil traders are getting ready to clean up and lick their plates clean. You can bet that the drama beginning to play out with regards to fracking will have a huge benefit for the standard bearers of energy; oil and coal. Combine this drama with the anti-nuclear energy sentiment we are already seeing forming as a result of the Japanese tragedy and you should be able to clearly see what I am getting at.

Yes. Oil prices and its buyers and sellers will see windfalls. Not that this is anything new, but it bares repeating for the young monkey wondering where his dollar will take him/her furthest.

Commodities are the basis of human life guys. In the 21st century they will be the backbone of finance. Get your selves up to speed on this issue, it is a hugely important one that few are discussing.

Get with the fracking program monkeys!

Comments (26)

Mar 15, 2011

For a second I thought this was a Battlestar Galactica thread. Ah well, moving on...

Mar 15, 2011
CaptK:

For a second I thought this was a Battlestar Galactica thread. Ah well, moving on...

Same here

Mar 15, 2011

Midas: I'm guessing that this is the free market in action...yes?

Mar 15, 2011

I was in agreement with CaptK there... I was expecting a Battlestar reference and a picture of Tricia Helfer

Mar 15, 2011

Admiral Adama gets my dick hard, no homo.

Mar 15, 2011
TheKing:

Admiral Adama gets my dick hard, no homo.

Pretty much this.

Mar 15, 2011

The image associated with this pic has been changed as a result of evil bankster lobbying.

@ UFO,

There are some elements of markets involved, surely...how free they are is whole different ball of wax.

Mar 15, 2011
Midas Mulligan Magoo:

There are some elements of markets involved, surely...how free they are is whole different ball of wax.

It seems that the bigger a business, the more the state becomes involved......

Frieds:

Tricia Helfer

oh baby "Show me you're alive"

Mar 15, 2011

I'm glad I'm not the only one who thought this was a BSG post...

Mar 15, 2011

UFO,

I could have went with Grace Park as well... Six in 1, 8 in the other.

Mar 15, 2011
Frieds:

UFO,

I could have went with Grace Park as well... Six in 1, 8 in the other.

Mmmmm, chinese food......yummy

Mar 15, 2011

I'd definitely kill people on this site to sleep with Caprica 6. Untouchable body.

Mar 15, 2011

Well...since this thread has been jacked and murdered I might as well contribute...

I'd also like to point out that Trish Helfer in Burn Notice is the type of chick that always gets an Angry Dragon from me.

Mar 15, 2011
Midas Mulligan Magoo:

Well...since this thread has been jacked and murdered I might as well contribute...

I'd also like to point out that Trish Helfer in Burn Notice is the type of chick that always gets an Angry Dragon from me.

Heh sorry Midas. I couldn't resist.

Mar 15, 2011
CaptK:
Midas Mulligan Magoo:

Well...since this thread has been jacked and murdered I might as well contribute...

I'd also like to point out that Trish Helfer in Burn Notice is the type of chick that always gets an Angry Dragon from me.

Heh sorry Midas. I couldn't resist.

No worries. Good cause.

Mar 15, 2011

We can give Midas this thread back and take the Battlestar talk over here:

http://www.wallstreetoasis.com/forums/battlestar-g...
As for resources, shipping could be another industry to look at, that coal isn't going to ship itself from Australia and Indonesia to China or India.

Mar 15, 2011

Am I a nerd for knowing it was an energy reference or not a nerd for not even knowing it was a Battlestar reference (I've never even watched that show)

Mar 15, 2011
<span class=keyword_link><a href=/finance-dictionary/what-is-london-interbank-offer-rate-libor rel=nofollow>LIBOR</a></span>:

Am I a nerd for knowing it was an energy reference or not a nerd for not even knowing it was a Battlestar reference (I've never even watched that show)

Lol. You're not alone man, had to some searching to figure it out myself. Funny how the fracking conversation just can't seem to get going anywhere in spite of its importance.

Mar 16, 2011

quote=Jorge]

Frieds:

This discussion is now about how hot Tricia Helfer is.

Or we could turn this into a versus match

I'll take Grace Park thank you.[/quote]
I'll take them both

Mar 16, 2011
UFOinsider:

quote=Jorge]

Frieds:

This discussion is now about how hot Tricia Helfer is.

Or we could turn this into a versus match

I'll take Grace Park thank you.

I'll take them both[/quote]

Pssh, the 7s are where it's at.

Mar 15, 2011

I'll try to restore some dignity to this topic. Fracking is becoming more and more of a viable option as oil prices increase. The increase makes the use of fracking a viable option from a profitability standpoint as it is certainly more expensive than traditional oil recovery methods. There is currently a great deal of research going into the study of materials used in the fracking process. The research performed is called rheology and has a great deal to do with the success of fracking. When the drill bit is drilling into the rock, fractures are made, however, the main issue is that the fracture has a tendency to close and the sediment from the rock that was drilled away falls back into the fracture thus blocking it. The research being done is to identify fluids that will carry the sediment away from the fracture while maintaining the opening of the fractures so that the oil can be extracted. Once all the environmental issues are figured out here in the US this maybe the primary method for extracting oil in this country.

Mar 15, 2011

Midas,

That's because using the word Fracking instantly cues all Nerds to look for something about Battlestar Galactica... or worse.. RED DWARF!

Cheese,

Don't even try. Just don't. This discussion is now about how hot Tricia Helfer is.

Mar 15, 2011
Frieds:

This discussion is now about how hot Tricia Helfer is.

Or we could turn this into a versus match

I'll take Grace Park thank you.

People like Coldplay and voted for the Nazis, you can't trust people Jeremy

Mar 16, 2011

Watching the show I had no idea Grace Park was so hot. Damn, she is seriously under utilized in the BSG uniform.

Mar 16, 2011
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Mar 17, 2011

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