It’s 2015 and the United States oil and gas industry is rapidly growing as it starts to ramp up its production across the nation. New technology is making it much easier and less expensive for companies to access oil and gas from the earth. The last few years alone has seen the development of hundreds of drill sites and new infrastructures to manufacture and export oil and gas to places all over the world. Many are calling this a modern day industrial revolution.
Revitalized America’s Energy Sector
Thanks to hydraulic fracturing, America’s energy sector is alive and booming. Hydraulic fracturing (fracking) involves the use of chemicals, water, sand, and other solvents that are injected into wells at high pressure to access natural gas and oil deposits. Despite much delay and heavy regulation, America’s oil and gas industry is outperforming every other nation in the world.
Much of the oil and gas that is currently being mined by fracking exists on private land. Oil and gas production on federal land is becoming harder to come accomplish. Federal drilling permits are much harder to get and permit approval time has steadily increased. Of course, companies seeking to gain permits for drilling on private land are finding it much easier to get state approval. This is enabling energy companies to maneuver around these obstacles much faster.
Plan for the Future
Now that oil prices are at an all-time low, it is widely speculated that the fracking industry will start to take a hit. Before the industry takes the hit that some economists say is coming, the industry if anything will slow down, but not to the point of becoming a bust. As with any industry, there is always going to be an ebb and flow in the supply and demand of commodities. The best way for the fracking industry to prepare and buffer itself is to create more refined and safer practices to enable it to experience sustained and reliable demand for the long-term.
Let’s face it, fracking is not cheap. It is very expensive to rely on, especially when one takes into consideration its potential negative impact on the environment. While many other areas of the country are more insulated against the effects of sustained lower oil prices, local oil and gas communities will experience some reduction in production. This lag is not going to jeopardize the future of fracking; rather it will give companies just enough time to fine tune their approach so they can continue to push the revolution of the industry forward.
Keep in mind that there are other factors that are driving oil prices down and some of those factors include parties that want to cripple America’s fracking industry so that they can reestablish America’s dependence on foreign oil and gas. For instance, some foreign oil providers are trying to drive the prices down so that the small time players in the fracking industry are forced to close up shop. As those small companies start to close their operations, the amount of domestic oil and energy the US produces is reduced. Less United States energy production means less global political influence. With the fracking revolution, the US is finally in a position where it can once again exert its influence and prowess to the world without crippling its own economy and infrastructure to do so.