WTI Approaches $60 — Frackers in Play

Quick post here as I am busy partaking in high finance.

The oil complex isn’t an even playing field. Low cost producers gimp out everyone else on a continual basis, prime areas of Texas have led to bountiful gains in a number of producers for decades. Since the advent of horizontal fracking, a slew of new money wildcatters edge-Lorded their ways into the Dallas players circle, many of whom own properties in N. Dakota.

When oil was north of $100, there was a great big fucking boom in N. Dakota, with wages skyrocketing and lawlessness spreading rampantly like in the HBO show Deadwood. However since then the region has been in decline — because it is expensive to frack for oil. The sand, the water — all of that shit drives up the cost of production that makes it unprofitable or barely profitable to drill.

Now with WTI getting back to $60, which was the baseline case for oil for a long, long time now, I suspect many fracking projects will get the green light again — which I believe is starting to be reflected in the shares of EMES, SLCA, HCLP, FRAC, SLCA, CRR, PUMP and other fracking plays.

I haven’t bought any yet, but am thinking about it now.