{"id":6267,"date":"2015-03-07T07:14:29","date_gmt":"2015-03-07T12:14:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6267"},"modified":"2015-03-07T07:14:29","modified_gmt":"2015-03-07T12:14:29","slug":"this-chart-shows-the-true-collapse-of-fracking-in-the-us","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6267","title":{"rendered":"This Chart Shows the True Collapse of Fracking in the US"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/03\/06\/the-collapse-of-fracking-as-we-know-it\/\" target=\"_blank\">This Chart Shows the True Collapse of Fracking in the US<\/a><\/h3>\n<p>\u201cPeople need to kinda settle in for a while.\u201d That\u2019s what Exxon Mobil CEO Rex Tillerson<a href=\"http:\/\/bigstory.ap.org\/article\/303c55445fcd4824ba581f04ddf8afb4\/exxon-ceo-get-used-lower-oil-prices\" target=\"_blank\">said<\/a>\u00a0about the low price of oil at the company\u2019s investor conference. \u201cI see a lot of supply out there.\u201d<\/p>\n<p>So Exxon is going to do its darnedest to add to this supply: 16 new production projects will start pumping oil and gas through 2017. Production will rise from 4 million barrels per day to 4.3 million. But it will spend less money\u00a0to get there, largely because suppliers have had to cut their prices.<\/p>\n<p>That\u2019s the\u00a0<em>global<\/em>\u00a0oil story. In the US, a similar scenario is playing out. Drillers are laying some people off, not massive numbers yet. Like Exxon, they\u2019re shoving big price cuts down the throats of their suppliers. They\u2019re cutting back on drilling by idling the least efficient rigs in the least productive plays \u2013 and they\u2019re not kidding about that.<\/p>\n<p>In the latest week, they idled a 64 rigs drilling for oil, according to Baker Hughes, which publishes the data every Friday. Only 922 rigs were still active, down 42.7% from October, when they\u2019d peaked. Within 21 weeks, they\u2019ve taken out 687 rigs, the most terrific, vertigo-inducing oil-rig nose dive in the data series, and possibly in history:<\/p>\n<p><a class=\"image-anchor\" href=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/03\/US-rig-count_1988_2015-03-06oil.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12566\" src=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/03\/US-rig-count_1988_2015-03-06oil.png\" alt=\"US-rig-count_1988_2015-03-06=oil\" width=\"514\" height=\"392\" \/><\/a><\/p>\n<p>As Exxon and other drillers are overeager to explain: just because we\u2019re cutting capex, and just because the rig count plunges, doesn\u2019t mean our production is going down. And it may not for a long time. Drillers, loaded up with debt, must have the cash flow from production to survive.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This Chart Shows the True Collapse of Fracking in the US \u201cPeople need to kinda settle in for a while.\u201d That\u2019s what Exxon Mobil CEO Rex Tillersonsaid\u00a0about the low price of oil at the company\u2019s investor conference. \u201cI see a lot of supply out there.\u201d So Exxon is going to do its darnedest to add [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[331,1775,1644,3450,2531],"class_list":["post-6267","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-fracking","tag-oil-price-collapse","tag-rig-count","tag-us-oil-rig-count","tag-us-rig-count"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6267"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6267\/revisions"}],"predecessor-version":[{"id":6268,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6267\/revisions\/6268"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}