p.p1 {margin: 0.0px 0.0px 0.0px 0.
0px; font: 11.0px ‘Helvetica Neue’; color: #000000; -webkit-text-stroke: #000000}p.p2 {margin: 0.
0px 0.0px 0.0px 0.0px; font: 11.0px ‘Helvetica Neue’; color: #000000; -webkit-text-stroke: #000000; min-height: 12.0px}span.s1 {font-kerning: none}Through the development of a process called ‘fracking’, which means getting access to oil much further down in the ground. These unretrievable oil reserves now became retrievable, and with oil at a 100 per barrel, it became very profitable to start fracking.
The United States being a country which is very rich in resources saw the start of a new oil boom. New companies together with big old names started to ramp up production exponentially to take advantage of the high oil prices and low fracking costs. Furthermore, the United States started to pump up so much oil, to levels not seen in the United States since the 1980s. Russia also upped their production while the OPEC countries relatively stayed on the same level with a slight pump. The United States pumped up more oil a day then Saudi Arabia or Russia in 2014.In 2014, news came out that suggested that China’s growth is stalling which would cause oil demand to stagnate.
At the same time, Europe was also in danger of a new recession. All of a sudden, with oil being at their heights level in over 80 years in the United States and production to double in the next couple of years, caused many people to step back and realise that there was to much oil. This caused oil prices to drop. The world blamed the OPEC countries and told them to cut production. The OPEC countries did not agree because they could produce oil at a much lower rate than countries like the United States or Russia could.
Fracking is sustainable at levels of $100 per barrel but not at $30-40. The OPEC countries thought that the free market would make these companies go bankrupt.A year later we are still down because of cheap credit and everybody refusing to stop the pump while thinking it would go back up.
The smaller companies of the United States have continued to pump to pay their debts but doing this is getting them in more in debt. Once their credit runs out they will go bankrupt. There are also the investors, that bought oil at cheap prices and storing them in leased oil tankers until the prices are back at $100 a barrel. The coast of the United States is filled with oil tankers waiting to be dumped on the market.Finally, there is a stronger demand for more sustainable energies.
