Drilling Rigs Go Into Storage, Oil Production Starts Falling As US Fracking Boom Turns To Bust

Shale oil production is now falling in most US plays (including the Bakken Shale in North Dakota and Eagle Ford Shale in Texas) and the US Energy Information Administration is predicting that the decline will accelerate, with the number of active rigs drilling halving in 6 months and storage of rigs becoming a problem.

Despite claims of a shale economic miracle with the global economy faltering, partly due to years of high oil prices, oil demand is falling and massively expensive shale drilling (up to $10 million per well) cannot continue without the high prices which once drove it, and those suckered in are beginning to regret it.

Unfortunately for the communities involved falling production will eventually revive prices and if not stopped another short term frenzy of drilling will likely ensue. This is the reality of the “energy security” touted by the fracking industry, a series of increasingly unstable cycles of boom and bust fueled by junk bonds, huge debts and massive hype, each one more destructive and costly than the last.