Calm before the Oil Storm

McAllister, E. (2014, November 7). U.S. fracking firms stay in top gear despite oil price slump Retrieved on November 23, 2014 from http://www.reuters.com/article/2014/11/07/us-oil-prices-fracking-analysis-idUSKBN0IR0EB20141107.

Companies like Hi Crush provide the materials like sand and powder-like gum for fracking purposes. Both of these products are used in what is known as “completion” of an oil well, which occurs after drilling and during fracking to keep tiny fractures open in shale rock to allow oil to escape. Over the past couple of months companies like Hi Crush have seen their stocks dropping, although they have recently signed long term contracts with major oil companies and predict a brighter future for themselves.

This article foreshadows the fracking and oil boom the US will soon face. Companies are gearing up for a major oil season in the future. However, a fall in prices could lead to the down fall of these major companies. There are some oil wells that have been drilled but the extracting process has yet to begin. It is said that on average oil wells are only in operation for a few months at a time until all the oil is used up. This recent push by oil companies could further worsen the hazardous chemical debate the US is facing.

Leave a Reply

Your email address will not be published. Required fields are marked *