1) I m sorry for being ignorant here, but fracking is profitable as long as the oil price stays above 50ish$ right?
2) are electric pump trucks a viable solution ? has it been used for long in the industry? (I will research myself that piece but I wonder if you know something already)
Fracking profitability depends on the prices for the three products, oil, natural gas, and natural gas liquids. The Haynesville, is 95% natural gas, but the Permian and the Bakken are much more oily. Some estimates put the breakeven oil price for new frack wells to be around $55-$65 depending on the basin. Those numbers all all moving targets as there is still innovation in fracking, such as VTLE's horseshoe wells. With export terminals coming online, about 2 billion cubic feet per day of capacity each year until 2030, drill rigs should average higher, but cyclically. Electric pumps are the new solution, but there are still plenty of diesel trucks, and plenty of dual-fuel trucks. Electric is fetching a premium price as diesel is expensive. If for some reason diesel prices fell, anything is possible.
wow CVNA @ $4...
I will never forgive myself for selling calls at $5.50. So stupid
something something "generate income" something something.
But seriously, keep up the great work and I'm happily paying. GT and FWRD are now on my 👀list.
1) I m sorry for being ignorant here, but fracking is profitable as long as the oil price stays above 50ish$ right?
2) are electric pump trucks a viable solution ? has it been used for long in the industry? (I will research myself that piece but I wonder if you know something already)
Fracking profitability depends on the prices for the three products, oil, natural gas, and natural gas liquids. The Haynesville, is 95% natural gas, but the Permian and the Bakken are much more oily. Some estimates put the breakeven oil price for new frack wells to be around $55-$65 depending on the basin. Those numbers all all moving targets as there is still innovation in fracking, such as VTLE's horseshoe wells. With export terminals coming online, about 2 billion cubic feet per day of capacity each year until 2030, drill rigs should average higher, but cyclically. Electric pumps are the new solution, but there are still plenty of diesel trucks, and plenty of dual-fuel trucks. Electric is fetching a premium price as diesel is expensive. If for some reason diesel prices fell, anything is possible.