A Weak Dollar Subsidy That The U.S. Oil Industry Can’t Compete Without

BusinessPolicyA Weak Dollar Subsidy That The U.S. Oil Industry Can’t Compete WithoutByJohn Tamny,Contributor.Follow AuthorMay 28, 2026, 11:00am EDTROBINSON TOWNSHIP, PENNSYLVANIA - OCTOBER 26: A hydro-fracking drilling pad for oil and gas operates October 26, 2017 in Robinson Township, Pennsylvania. The Kendal well pad is using a horizontal drilling technique for extracting oil and gas in the extensive Marcellus shale formation. (Photo by Robert Nickelsberg/Getty Images)Getty Images“Rates of return get pretty minimal below fifty dollars.” That how legendary oil man Harold Hamm described the extraction state of play to Gregory Zuckerman in his 2013 book, The Frackers. The high cost of stateside oil drilling rates extra thought right now, and as squabbling continues among energy proponents about which energy is the “correct” one. In a recent piece at the Wall Street Journal, Always On Energy Research vice president Isaac Orr and policy analyst Sarah Montalbano wrote that “Solar can’t compete with other energy sources without” federal handouts. No judgement will be made about their argument. Instead, it will be said that solar, like any other market good, can’t be judged in static fashion. To see why, contemplate natural gas. For the longest time liquid natural gas production made less sense given the challenge of shipping it long distances domestically or globally. That’s no longer true. It raises questions about what solar power could be, not what it is now. By all accounts, there are times in the day during which so much solar energy is produced that its price plummets. What’s the long-term potential there? About what’s been asked, the same goes for domestic oil exploration. See the Hamm quote above. It’s a reminder that oil hardly stands on its own right now. Consider the price per barrel at which frackers break even. $10/barrel and $7/barrel is not the number, but that’s how low the price of crude fell in the 1990s and 1980s respectively. MORE FOR YOUThinking abou...