Tuesday, February 12, 2013

German and Fracking

Fracking has been making the big-media news over the last five years on a continual basis.  In the US and Canada....it's a daily thing to have it mentioned, with a pro and negative stance often discussed.

Germany?

The German media has discussed it more now since significant deposits have been found.  Some folks think that fracking might a big economic positive over the next decade....if the German states (not the German federal government) would approve the fracking method.

Well....it'd be fair to say that research is progressing but operational fracking is in a halt situation.

The Bundestag is reviewing a number of regulations that would tie up the fracking crowd and probably limit everyone to simply research only.  If you go and review the state views.....it swings from one extreme to the other.

Some states believe the danger outweighs any logical reason to conduct fracking.  And a couple of states see a vast fortune sitting under their feet.

My humble guess is that enough rules will fall into place to limit fracking for the next ten years, with research allowed to continue.  But eventually, when natural gas prices reach a higher position and economic logic swings in the other direction.....the rules might be loosen for individual states to make their own decisions.

The curious thing will be if every state wants a piece of the profit off one state's decision, or they allow the state to keep profit from it's decision.

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