Trumps campaign drove home the idea that he could bring back American jobs and we have yet to see much in the way of true job creation. But, that's not stopping the shale industry. Shale production in the United States had hit an all time low in September of 2016. But in the short months since it has nearly recovered all of the previous years losses.
The Boom is predicted to be bigger than the last. This is larger due to a few factors. First the increase in available technology, this has allowed cost to drop significantly which allows for shale oil to compete with other rather easily attainable oils. Next, is the drop in OPEC output. After terms were agreed upon in early December to cut OPEC's production shale output began to rise.
Trump has said that he will remove the regulations that are holding American companies back if this is true and American oil exports could increase this could be largely beneficial for the jobs market and the trade in balance. Only time will tell.
https://www.bloomberg.com/gadfly/articles/2017-02-26/with-shale-oil-production-like-this-who-needs-trump
1 comment:
Extremely interesting article from the Bloomberg. One of the most interesting points the article makes is not the changes in tehcnology but the change in philsophy that has allowed domestic shale producers to act much faster than the larger oil producers.
Additionally, this article discusses that shale production will most likely not keep up this lad. SInce eventually costs will rise as the shale production grows. However, it is possible that with the promises from President Trump to lower the restrictions on American Energy, that shale will continue to be a large part of the industry.
Post a Comment