Shale oil can contribute to energy independence deposit dispute America

U.S. shale oil is mainly concentrated in North Dakota's Bakken region and southern Texas Eagle Ford regions. According to the Energy Information Company HIS data from 2005 to 2012, these two places oilfield produced shale oil shale oil production in the United States accounted for more than 80%.
In recent years,frac proppant the Bakken shale oil region blowout-style development. Statistics show that since 2005, North Dakota oil production soared from 90,000 barrels to 70 million barrels. Some even predicted that oil production in the Bakken region will eventually reach 200 million barrels.
This rapid growth of the industry excitement, but also to stimulate the American dream of energy independence. However, in the excitement behind the appearance, U.S. shale oil extraction is still facing many unavoidable development bottleneck.
First, the development of shale oil revolutionary technology "fracking," because the environmental damage which may be suffered Policy resistance. After a long time the oil industry lobbying legislators on this technology hostility eased, but the U.S. Environmental Protection Agency and some other environmental agencies unremitting efforts,  Hydraulic fracturing  technology may still be banned. Currently, New York State prohibit the use of hydraulic fracturing. Worldwide, the French also disable this technology.
Secondly, shale oil development facing cost pressures. It is understood that, although the industry giants such as Exxon Mobil Corp. and gradually involved in shale oil field, the current U.S. production of shale oil companies are still many small and medium enterprises. These enterprises require higher capital flows, on the cost of higher sensitivity. Lv Todd Energy Consulting's data show that U.S. shale oil production cost of 44-68 U.S. dollars per barrel, much higher than ordinary oil around $ 20 a barrel cost of production. Cost pressures may force some oil companies to change the direction of investment. Once these companies encounter cash flow problems, must first cut  shale gas  development projects.
In addition, shale oil production also faces transport bottlenecks. In Bakken oilfield as an example, because a rapid increase in oil production, the local oil pipeline has been overwhelmed. In February this year, due to the transport limited, Bakken barrel of oil produced by oil price lower than the U.S. $ 27.5 basis. Although Buffett's company had to invest in the regional transportation system, the construction of infrastructure facilities but still a few years time, which is bound to limit oil development. Meanwhile, oil prices will squeeze corporate profit margins, thereby combating the production enthusiasm.