How is fracking changing the energy market?
Exploring fracking: how fracking casts a shadow over its own future
Show transcriptIn this episode of The New Economy’s series exploring fracking we talk about the changes in the energy market attributable to the resurgence of fracking.
How is fracking changing the energy market?
Fracking has seen a resurgence because high oil prices made it economically viable. This led to numerous start-up fracking companies borrowing huge sums of money, promising to create jobs, growth and economic security.
The US is poised to drill more of its own oil than it imports from other countries for the first time in 18 years.
Unsurprisingly, fracking hotspots, such as Williston in North Dakota, are experiencing a huge influx of workers seeking new opportunities.
However fracking’s success has cast a shadow over it’s future, by boosting supply, it has contributed to plummeting oil prices.
But the process of fracking is more expensive and less reliable than other methods
So as success for fracking depends on high oil prices, fracking companies may soon see their bubble burst.
At least in the short term fracking has changed the oil production market, reducing dependence on traditional exporters like Saudi Arabia but how big an impact fracking will have in the long term remains to be seen.
Please watch our other videos on the challenges of fracking and what fracking is.