Tuesday, June 10, 2014

The German Fracking Debate

Last week....Germany came out with a pro-fracking stance that shocked most folks.  So, you'd take that and think the world had turned upside down.  Well....no....it's just not that way.

You see....what the German government said was that fracking could advance but there would be future rules and regulations written.  The extent?  It'll likely make it almost impossible to find a profitable plan that allows some minor risk and fair profits to come out of such adventure.  To get to this grasp of the situation....you would have had to read at least five articles and watch an hour or two of public debate comment to realize the lack of value in the announcement.

What Germans generally admit.....is that there's plenty of gas that could be extracted out of the eastern sections of Germany.  The amount is not clear....mostly because companies have only done limited research.  You can sense the lack of research mostly on payback possible and the amount of rules already in place.

Why did Germany suddenly change their mind and hint of possible fracking situations?  Ukraine...pure and simple.  They saw Russia's stance and the amount of reliance that they have with Russian natural gas.  Somewhere in the future....there will be some event to occur and Russia will no longer be considered a friendly partner.  So this fracking business becomes important.

What happens now?  Some scientists will get onto the rules committee and write a couple of hundred pages on what is acceptable and how things will progress.  Maybe there's some real fracking started in two years....maybe none.  It all depends on the regulations and the profit margin.

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