Fracking

☆ American “Frackers”: Bankers, Brokers, And Investors Can Feel “Seismic” Tremors In The Oil Bubble

News Analysis: The much vaunted “American Oil Fracking Technology” which the Mass Media loves to extol, is now being confronted with World Oil Over-Supply Realities. For American Frackers: Bankers, Brokers, and Investors can feel “seismic” tremors in the Oil Bubble.

Middle East Oil Producers (MEOPs), to their credit, did not cut oil production (as the “Masters of the Universe” for Oil, had forecasted). Instead, they are letting the “Law of Supply and Demand” burn out the vestiges of ‘Oil Frackers and Fracking’ around the globe. Since the “Lifted” costs from traditional oil production methodologies are considerably less, these ‘MEOPs’ can merely continue doing what they have done for decades; This, while the “American Technology Frackers” ‘Bite the Dust’ one by one in seriatim fashion.

Some International Businessmen are in amazement that Bankers, Brokers, and Small Investors were so naively sure about the anticipated behavior of ‘MEOPs’, that they had placed over an estimated $200 Billion Dollars with the ‘Frackers’; now they will feel the Oil Bubble Tremors (before it bursts). So much for the cost of arrogance.

We, at JSPP, had predicted the Reality of Oil Bubble Bursting long ago (even before the Mass Media jumped on the Pro-Fracking Bandwagon). Why? Because the “Law of Supply and Demand” in Commerce, is Inviolate!

Traditional Oil Suppliers typically have lower ‘Lifted Costs’ than ‘Frackers’; this, along with a ready supply of oil that they can send to market at a reduced price. The ‘MEOPs’ logic (with their ‘Deep Financial Pockets’): “These lower prices may be somewhat uncomfortable for our economies, but it is NOT FATAL to our operations”; as is the case for many ‘Frackers’. As the ‘MEOPs’ provide more and more oil, there will be logarithmic damage to the ‘Frackers’.

As the estimated $200 Billion Dollars in loans to ‘Frackers’ becomes due, and is not paid, the tremors felt in the American Oil Business will migrate throughout the economy. Since the price of Oil could go as low as $22 to $28 Dollars a barrel, one thing is for certain, many people filling up their cars with gasoline, at American Gas Stations, will have smiles on their faces.

As for the Bankers, Brokers, and Investors, who ‘bit’, was not it reported that ‘Fracking Can Cause Seisms’?

Reality.

Reference: http://rt.com/business/220619-shale-debt-us-companies/

☆ Ohio, U.S.A., State Authorities Say “Fracking” Causes Seismic Events

News Analysis: Allegedly Hydraulic Fracturing (Fracking) of Sediments deep underground by using high pressure water and/or chemicals causes additional stress therein; these are said to be ‘Conditions Precedent’ for Seisms. As more time passes, and additional testing for Earthquakes takes place, will other States declare like Ohio, U.S.A., State Authorities and say “Fracking” Causes Seismic Events? Time will tell.

We think much more Problematic Possibilities occur around the ENTIRE GLOBE with what occurs: which we call “‘Accupressure’ of the Earth”. “Sky Scrapers” being built singularly or en masse in confined locales, i.e., Commercial Centers of Cities causes Great Stress, we think. The PRODIGIOUS MASS of each “Sky Scraper” causes pressure to directly underlying Sub-Strata (Much like a person standing on the edge of a Diving Board; it bends profoundly). We think that “Where the diver is standing on the board (Base, Middle, or End)” is of importance to Deflection as is his mass; so too are “Sky Scrapers” over their Sub-Strata.

A large stress by a building might have less effect to that which is underneath, in a particular locale, yet caused severe deflection of the Sub-Strata located elsewhere (that is: “It’s MASS LOCATION relative to the particular Sub-Strata may be Critical and cause Earth Quakes OVER TIME). Much as a Tectonic Plate may “Dive Under” another Plate, Fracturing of part of the Plate (Seism) relieves pressure build-up. So too, pressure build-up due to “Sky Scrapers” being erected over a particular Sub-Strata may cause it to deflect and release pressure MANY miles away.

Perhaps, New York City, with its multitudes of such “Monsters”, while built on Granite, is stressing other geologies, far afield. If for example, Pittsburgh, Pennsylvania, was struck with a huge Earthquake, would it be connected to the stress caused by the vaunted ” Big Apple”?

Since Ohio, U.S.A., State Authorities declare: “‘Fracking’ Causes Seismic Events” what would they think about Chicago, Illinois, “Sky Scrapers” stressing ‘The Buckeye State’? 

Geologists, who Scientifically Test Our Postulation, will have to be undaunted by severe attacks by “Vested Construction Interests” of Bankers, Insurance Companies, and Real Estate Developers. To some, “The Truth Hurts”.

Seismologists must “Think Outside The Box” and investigate our “Acupressure of the Earth” Theorem since, if verified, its effects may be profound. We offer It to those, with an Open Mind, who seek the Technical Truth.

Reality.

Reference: http://america.aljazeera.com/articles/2014/4/12/fracking-linked-toearthquakesohiouticashale.html

Eastern Mediterranean Sea Estimates Are 3 Billion+ Barrels Of Oil And 23 Trillion+ Cubic Feet Of Natural Gas

News Analysis:  Eastern Mediterranean Sea Estimates Are 3 Billion+ Barrels Of Oil And 23 Trillion+ Cubic Feet Of Natural Gas based on extrapolations from Exploration Drilling and Seismic Surveys. Many Scientists are increasing becoming of the view that such deposits are not unusual and will be discovered elsewhere also. They maintain that Petroleum is a result of ‘Natural Processes’ occurring on Earth, nothing more.

As more deposits, particularly off-shore, are discovered, the prices of Petrochemicals should subside through volume increases over future years.

One Industry that will be happy over a price reduction will be the Airlines. However  Aircraft Manufacturers may be displeased  with cost reductions (by new discoveries and ‘Fracking Production’ of existing Oil Fields). They are loathe to discuss this subject, of which they are very aware,  because  they would lose a significant marketing tool: “The Relentless Price Increases Of Aviation Fuel”. As a possible result, the selling of more profitable  “Lighter Weight Composite  Passenger Aircraft” may have less ‘Sizzle’ Sales-Wise, some people say. Reality.

Reference: http://www.globes.co.il/serveen/globes/docview.asp?did=1000902485&fid=1725

China Estimated with 36.8 Trillion Cubic Meters of Shale Gas

News Analysis: China Estimated With 36.8 Trillion Cubic Meters Of Shale Gas will help defuse soaring Gas Energy Costs, due to Demand, by Increasing Supply. It is estimated by some, to have the World’s Largest Deposits of Shale Gas. As China increases its  Prowess in ‘Fracking” Technology, more gas will be produced through this means.

Some people say: As more Energy Resources are discovered Everywhere in the World, perhaps its Citizens will realize that Petrochemical Formation is a “Natural Earth Process Occurring Over the Millennia”.

Often opined is: The “Scarcity of Supply” Mantra ‘Only benefits those who sell Petrochemical Products to Anxious Customers who believe such Drivel’. Commodity Traders sometimes make more money per barrel than those who actually produced the oil by drilling. Fantasies like ‘$200.00 a barrel” for oil are told to airlines, to sell more “lightweight” aircraft. A future with “$15.00 a Gallon ‘US’ gasoline” which was touted to the public to help sell  smaller cars with four and six cylinder engines, never materialized.

The Morality of the Marketing to the Masses is not very high. Reality.

Reference: http://www.scmp.com/business/commodities/article/1364705/spt-turns-bullish-shale-gas-outlook