Posted on 03/09/2016 6:32:07 PM PST by doldrumsforgop
When it comes to shale-oil regions in the United States, not all of them are created equal.
Oil production in the Permian Basin, which spans from western Texas to southeastern New Mexico, has been much more resilient in the face of the near-65% drop in oil prices CLJ6, -0.18% since mid-2014 than other shale regions, according to Charles Perry, chief executive officer of energy-consulting firm Perry Management.
“Not all shale production is the same and production in most shale areas has fallen since 2014,” he said. But the Permian Basin has grown to be the “most prolific oil-producing area” in the U.S.
The region now represents 18% of total U.S. oil production, according to Perry.
Data from the U.S. Energy Information Administration show overall declines in oil output this year from the Eagle Ford shale play in South Texas and the Bakken shale play, which stretches from Canada into North Dakota and Montana.
(Excerpt) Read more at marketwatch.com ...
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awesome
“Amazing statistic. What is even more amazing is that thousands of shale wells have already been drilled and awaiting fracs, so if price recovers some, a whole lot more oil will be produced relatively quickly without drilling.”
And that fact puts an effective lid on efforts to raise price - screw those sand cowboys!
You are exactly right. We know where the shale oil is and what it costs to extract it. If oil prices go lower (not likely) we will only drill and frac the “sweet spots.” If oil prices go higher we will drill and frac the less productive areas.
Prior to shale oil drilling and fracing, if you did not hit a sweet spot with high permeability with your vertical well you were screwed. Today we are going after the source rock which is the shale. We know where it is, we know what it will produce. That source rock is not small, it’s extent is many thousands of square miles in the Permian Basin and that is not our only basin.
In addition the cost of drilling and fracing has gone way down in a response to market forces.
Saudi Arabia no longer controls the price of oil, WE DO!
I spent 17 years on the drilling rigs from roughneck to geologist looking for oil. I loved it and miss it dearly. It is a young mans game and alas I am no longer that young man. I am just that friendly pharmacist with trifocals perched on the end of his nose, if you only knew. Do not even ask about the parties when the chopper would take us back to Stavanger, Norway. God I miss it!
Actually, Steve Holditch estimates at least 10x shale resource volume compared to conventional oil.
Opec is screwed
I went to the pulling units at 54.
I worked the catwalk and the diving board on the Mesa
I saw a chart a few weeks ago that showed U.S. companies can make a profit from shale oil even with a $30 per barrel crude oil price.
“I saw a chart a few weeks ago that showed U.S. companies can make a profit from shale oil even with a $30 per barrel crude oil price.”
Like all places in the oilpatch, one must be selective. Yes, there are those places out there, but it is not as widespread.
try this one out for breakevens. http://seekingalpha.com/article/3955566-possible-acquisition-candidates-exxon-mobil?ifp=0
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