In The Wall Street Journal's 4 page Sunday Newspaper Insert, there was a major front page story on Oil Stocks.
"Oil closed this week at $80.54 a barrel. If oil drops to $70 or lower, oil and gas drilling will slow. High oil prices drove the energy expansion by making costly drilling techniques, such as hydraulic fracturing, or fracking, economically feasible."
If it costs $70 a barrel to produce the oil by fracking, no profit can be made by using that method.
I know that VOIL is using the old fashion drilling method, not fracking, to drill their wells in Utah. The old type drilling costs $20 to $30 a barrel to produce the oil. VOIL knew this, since their expert on drilling sites, was looking for places where oil was being found without fracking. Dr. Benson from the Colorado School of Mines was brought on board to find such sites. He has 4 decades of experience in oil and gas drilling. He found the proper spot after several years of working on the project.
The Wall Street Journal said yesterday that money to drill new wells, where fracking was involved, is drying up. I would think a company drilling the older way could find the funds to drill much easier. And it's much more profitable. VOIL doesn't just have one site. They continue to look through their large Utah holdings for many more sites!
