End game to the oil rout, page-5

As far as DLS goes it seems to be holding up well this morning given our index is getting trashed. Just a bit worried about that prop at 80cents. If that goes we are into new territory and the general markets are looking shaky with the commodity rout.

I read a few articles last night that came out in very strong defence of US oil saying that Saudi foreign reserves are going backwards at a rapid rate and the oil cartel is broken because fracking is a mid cost form of oil production and costs are falling rapidly. Then you just have to read deeper to see what a great industry it really is, causing earthquakes in states like Oklahoma and elsewhere to mention just one of the undesirable by products of this credit fuelled folly.

Eshmun

http://www.reuters.com/article/2015/08/04/us-oil-quakes-oklahoma-idUSKCN0Q91GJ20150804

"Oklahoma and several other central U.S. states have experienced a big increase in earthquakes since 2009. Scientists attribute this to increased underground injection since then of briny wastewater, a byproduct of booming oil and gas production.
Noticeable quakes, above magnitude 3.0, now strike Oklahoma at a rate of two per day or more, compared with two or so per year before 2009."

"After three quakes of magnitude 4.0 or higher struck the state in a single day last month, the commission required operators of more wells to prove they are not injecting water below the state's deepest rock formation, a practice believed to be particularly dangerous.
Monday's move goes beyond past restrictions by capping the amount of water operators in certain areas can inject at any depth. Many of Oklahoma's most active oil and gas fields have high amounts of naturally occurring water, and a reduction in the amount of water that can be injected could mean lower production of oil and gas.

Kansas, which has also had a spike in quakes, undertook a similar move in March.
"There was a time when the scientific, legal, policy and other concerns related to this issue had to first be carefully researched and debated in order to provide a valid framework for such action," Dana Murphy, who sits on the commission, said in a statement on Monday. "That time is over.""