OPEC fracks with US

There is a fracking problem in the US. A real fracking problem. Aside from the environmental damage that it causes, there are now the problems of capitalism.

When oil prices spiked to $100 a barrel (or more), fracking became very profitable. Wells went in everywhere and America became an oil exporter. OPEC didn't like that, so they put on their gloves and went to work over producing oil and driving prices down. Frackers responded in the way only a good capitalist can, by improving techniques and technology that allowed more fields to go in with fewer workers needed.

OPEC pulled the gloves off and oil is around $30 a barrel. Frackers can't compete at that level or lower. So now they have a problem – excess production and no demand for their oil.

That being said, OPEC is in the same pinch. Too low a price puts a pinch on their economies as oil sales are their main source of income.

So what are the frackers going to do? Given the glut in the oil market – the only thing they have to sell is natural gas and the only way to get it to market is in liquefied form. Frackers can make more money selling fracked gas to Asia than they can make in the US. For that matter, it will be more profitable because sending the liquefied natural gas to Asia will raise the price over here, so it's win-win for them, lose lose for us. They win by making more money all around. We lose because our environment gets wrecked by the frackers (air, land, and water) andwe wind up paying more for what they wrecked our environment to get.

How does this tie into WNY? I like to focus on WNY & issues of relevance to socialists and those sympathetic or curious about it.

Easy – Look to the Northern Access Pipeline that National Fuel Gas Supply Corporation is trying to build (actually modify the existing pipeline) to carry fracked gas from the Pennsylvania fields to Canada. Possibly for sale there or, more likely, for refinement so that it can be exported to Asia.

The communities of Pendleton and Wheatfield have been putting up a bold fight against the proposed pipeline and compressor stations. They have been fighting it on environmental grounds and other safety issues and concerns. In January there will be a meeting between National Fuel and the citizens of Pendleton about the pipeline and compressors in their community. It will be a bully session for National Fuel, as they will control the meeting and the way it will be handled.

We need to support them in any and every way that we can.

Environmentalists & socialists demand the following:

1. An end to fracking in Pennsylvania and a permanent ban on all fracking in NY.

2. An end to the modification of the Northern Access Pipeline.

3. An end to government subsidies of fossil fuel production with NO price increase from the suppliers.

4. More government support for the development of sustainable renewable energy sources in NY.

All out for Pendleton & Wheatfield,

We need to put an end to this fracking problem and move on while we still have a chance.

Sources used from the Buffalo News:

“Frackers fearful as prices keep falling.” Dec. 29, 2015 p. E1

“Big gain seen for Asia, small loss for US from liquefied natural gas exports.” Dec. 29, 2015 p. E4

January 01, 2016 LNG Update

Bloomberg doesn't seem to be able to get its news straight.

Yesterday (12/31/2015) Asia was the top destination for Liquid Natural Gas (LNG) exports.

Today's article says Europe.

And the first port that will be producing and pumping for export is down in Louisiana at the Sabine Pass terminal. The company that will be producing the LNG is Cheniere Energy Inc.

So fracked gas will be going from contaminating American land, water, and air to Europe where it will continue to contribute to global warming and the changes in the climate and its patterns.

On the bright side, on the adjacent page was an article on the growth of solar and wind energy in the US.

Did you know that Texas was the leading state for wind energy production?

Makes you wonder where all the hot air is coming from.