#fracking #oil #DemandForOil #FrackingEquipment #AlternativeEnergySources
Fracking – hydrolic fracturing to dig crude oil and natural gas out of hard-to-reach places – is facing a slowdown.
Halliburton, the largest supplier of fracking equipment, is trimming 8 percent of its North American workforce and shelving unused fracking gear, according to David Wethe, in an article for Bloomberg News. It was also published July 23, 2019, in The Atlanta Journal-Constitution.
In February, Halliburton and its competitors would have 24.4 million horsepower available for fracking, yet only 14.4 million would be needed this year, the article quotes industry consultant Rystad Energy.
The reduced demand for fracking, which helped the U.S. reduce its demand for Middle Eastern oil, can only mean one thing: there is less demand for oil, period.
Fracking’s history was fraught with peril. Environmentalists had initial questions about the technology, and whether there would be unintended environmental consequences.
Fracking was even accused of inciting earthquakes.
Yet, it survived, and helped places like North Dakota thrive economically. It helped turn the U.S. back into one of the largest, if not the largest, oil producers in the world.
Now, it seems alternative energy sources are getting cost-effective enough to substitute for petroleum products as fuel in many cases. As a result, both oil and natural gas have become so cheap, it may cost more to retrieve the oil and gas from the ground than they can get for it.
More importantly for us, the story of fracking presents a parable from which we can all learn.
Even “new” technology can become obsolete, or nearly, very quickly. It’s often said that those in some professions need to learn new skills to stay relevant in a competitive job market. Frackling is fairly new technology. But from the Bloomberg report, it’s already heading toward becoming a flash in the pan.
As you go to work, no matter your job, do you ever ask yourself how long that job is going to be there for you? Did you get “retrained,” only to find that your “retraining” is now obsolete?
Do you ever think that one day, the demand for your product or service will wane, and put you out of a job, as has happened to the undoubtedly surprised Halliburton workers?
Here is a safe presumption: no matter what job you do, figure that it will go away one day, probably before you want it to.
That requires one to look at other ways to make money. Fortunately, there are many programs out there that allow you to turn a few, part-time, non-work hours into income that can potentially dwarf what you are making on the job. To learn about one of the best such vehicles, message me.
Digging fossil fuels out of the ground is a lot of trouble, tough work and, in some cases, hazardous to workers’ health.
As a nation, we should be happy that our reliance on fossil fuels is waning. However, if you work in that industry, the job cuts can be devastating.
So, if you are not already thinking about what you will do when your job goes away, you should be. If you believe you’ll be able to work at your current job for as long as you want to, you might be right. Or, you could walk into work one day with a nasty, economically devastating surprise waiting for you.
As the saying goes, it’s always best to prepare for the worst, while hoping for the best. However, the best may be yet to come in a form you never thought you would ever see.
Peter