PJSC Gazprom Adr. (OGZPY)

[mick]

#4/ Mr. Market Or Mother Nature, Who Rocks Oil First?
http://seekingalpha.com/article/4025391-mr-market-mother-nature-rocks-oil-first
Nov. 22, 2016 5:16 AM ET|10 comments | About:
The United States Oil ETF, LP (USO),
OIL, UWTI, UCO, DWTI, SCO, BNO, DBO,
DTO, USL, DNO, OLO, SZO, OLEM, OILK, OILX

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Oklahoma earth quakes could cause supply shock.

However there is growing potential of a supply shock in the U.S. The Oklahoma oil hub is the most important in the U.S. and sets the West Texas Intermediate oil price. Ironically drilling for oil and fracking may bring on it's own demise.

Bloomberg reports that several producers, as well as the U.S. Environmental Protection Agency, are facing lawsuits because of seismic activity allegedly linked to oilfield wastewater disposal in Oklahoma and other states. The region, previously not known for intense seismic activity, began having a significant number of earthquakes in 2009, the same year area oil companies began using fracking to shatter deep rock layers to extract oil and gas.

In fact since 2011, the number and size of these quakes has grown immensely and it is just a matter of time before one does severe damage to the oil hubs, storage and pipelines. Note the number and dates of the 10 largest quakes in Oklahoma. Seven of the largest quakes have occurred since 2011.

Sept. 3, 2016 - 5.8

Nov. 5, 2011 - 5.7

Apr. 1952 - 5.5

Nov. 6, 2016 - 5.0

Oct. 1882 - 4.9

Nov. 9, 2011 - 4.8

Nov. 5, 2011 - 4.8

March 2014 - 4.5

Dec. 2013 - 4.5

1974 - 4.5

Perhaps Mother Nature will disrupt supply before the lack of drilling.

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I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.