Slowed global demand with supply glut to drain in 2019
Hydraulic Fracturing is the process of stimulating rock to capture gas from shale formations in the Earth, and is also one of the main reasons the United States is on its way to be a world leader in energy production. In this technological age, advancements are happening daily and rapidly. One nuance to the oil and gas industry is making the hydraulic fracturing process more seamless, efficient, safer, and less pollutant and that is coming to fruition with the innovation of Electrical Hydraulic Fracturing. So what is Electric Hydraulic Fracturing? The technology is based upon electricity powering pressure pumps and fracking equipment fueled 100% by natural gas fueled by field gas or alternative natural gas sources.
News was released this week announcing that the U.S. would be reinstating sanctions against Iran, specifically the Iranian government’s purchase of United States Currency (Dollar), Tehran’s trade in gold, other precious metals, and its automotive industry. President Trump stated as well that if Iran didn’t comply with the reinstatement of the first wave of sanctions that his administration would look into targeting Iran’s port industry as well as its energy shipping and ship building industries. These second wave of sanctions could ultimately have an impact on global supply as well as the worlds spare capacity cushion of oil. Sanctions against Iranian Oil will impact another player in the trade war against the U.S., China. China is the biggest buyer of Iranian crude oil and with Trump and his administration exchanging tariff blows back and forth it will be a test of time to see how long China will resist communicating with President Trump and the United States.