Hydraulic fracturing, or “fracking”, has become one of the fastest-growing methods for tapping into abundant shale reserves held within the U.S. The process works by pumping fracturing fluids-like slickwater, gel or foam–into a wellbore at a sufficient enough rate to fracture the rocks below. When these fractures occur, the operator injects proppants into the well to prevent the fractures from closing when the fluid pressure is reduced. And finally, oil and gas leak from the fractures into the well for extraction. But the revolutionary process is not without its drawbacks, as many criticize the side effects caused from fracking. Below, we outline the case against fracking and why a number of people have rallied against this rapidly-developing energy extraction method [for more fracking news and analysis subscribe to our free newsletter].
With the largest single day drop in gold prices dominating the headlines, many consumers have overlooked crude oil’s significant fall in prices as of late. Even without the decline earlier this week, crude has been relatively weak as of late, with few expecting this to change soon. It seems that the pressure keeping prices at bay is only expected to rise in the coming months and years as this commodity may be slowly losing its dominance [for more oil news and analysis subscribe to our free newsletter].
Backwardation and contango are two phenomena that define the futures industry of the commodity world. Though the terms have come handcuffed with a negative connotation, those who understand how they work should not sweat their existence. Backwardation is the process by which near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time. Contango, simply, has the opposite impact [for more commodity news and analysis subscribe to our free newsletter].
The U.S. has long dominated crude oil consumption around the world, as the insatiable need for the fossil fuel has long powered the economy. According to EIA estimates, the U.S. gobbles up around 18.9 million barrels of oil each day, or about 7 billion per year, the highest such figures in the world. While the nation may be close to supporting itself in terms of domestic oil production, it still will not change the fact that the U.S. relies more heavily on crude than any other country in the world [for more oil news subscribe to our free newsletter].
Big oil firms often come under fire for receiving everything from favorable tax treatment to government subsidies to conduct their business. And now it appears that another factor can be added to that list, as Representative Edward Markey of Massachusetts has begun pushing for a legislation change. The laws that he seeks to amend favor drilling royalties for some of the biggest names in the industry, with over 100 companies taking advantage of the policy [for more oil news and analysis subscribe to our free newsletter].
After breaking the triple-digit mark in 2012, crude oil futures have struggled to maintain their positive momentum. The end of last year saw the fossil fuel fall at the hands of increased output and supply, as new technologies are making it easier than ever to locate and extract reserves, not to mention the prevalence of natural gas. But the last few weeks of 2012 and the beginning of this year have seen crude turn things around, as the commodity has been once again reaching for $100 [for more crude oil news and analysis subscribe to our free newsletter].
The planned 1,897-kilometer Keystone XL Pipeline would transport up to 830,000 barrels of tar sands oil per day from the Western Canadian Sedimentary Basin in Hardisty, Alberta to the existing Keystone Pipeline system in Steele City, Nebraska. By building this pipeline, the goal is to increase crude oil delivery to existing refinery markets in the Texas Gulf Coast region [for more commodity news and analysis subscribe to our free newsletter].
When it comes to investing, we often look to experts and top traders, not just to learn their secrets, but to be inspired by their success. Quotes from top commodity traders and experts in the commodities market can serve to illuminate, invigorate, and motivate our research and trading. Below, we outline 20 of our favorite quotes about the hard-asset industry that all investors should know [for more commodity investing news and analysis subscribe to our free newsletter].