Posted on 12/13/2019 7:22:42 PM PST by brownwill6767
The shale-oil tsunami that has flooded New Mexico with a wave of petro dollars in recent years may be receding somewhat as U.S. production faces its first significant decline since the gushers began nearly eight years ago.
Signs of trouble are showing up in major basins around the country, with a significant drop in drilling rig activity and sluggish growth this year compared with the spectacular bursts of production in recent years that has transformed the U.S. into the world’s No. 1 oil producer.
(Excerpt) Read more at abqjournal.com ...
That poses substantial challenges going forward.
But a prolonged bust is unlikely, and New Mexico may be less affected than other places. That’s because the Permian Basin in West Texas and southeastern New Mexico remains at the forefront of the shale revolution, thanks to its rich resources, low production costs and the huge gushers that flow from wells drilled there.
the Permian Basin in West Texas and southeastern New Mexico remains at the forefront of the shale revolution, thanks to its rich resources, low production costs and the huge gushers that flow from wells drilled there.
Great news!
It’s the “Oil Patch” way.
As a field is finished and brought in to production most of the jobs fade away except for the maintenance jobs.
Fracked Shale oil/gas has a declining production curve of around 90% of the initial volume within 7 years.
New wells have to be drilled every year to maintain the same production rates nationally.
Yep, I was educated on "Peak Oil"
The words gushers and fracking go together like ugly beauty queen. (Notwithstanding the political correctness and quota consciousness that has gripped beauty pageants, of late).
I know nothing about this field.
Are new wells being drilled regularly?
90 percent is a LOT. Wow..
In the news today, California files a suit against the BLM for approving a lease to drill on 1.2 million acres of Federal Land in the state.
The oil lease is for one of the richest finds in the state in many many decades. Previous estimates have been debunked as greatly understated, likely for political reasons.
Recent survey estimates revealed a yield hundreds of times previous estimates.
The slowdown is the direct result of over supply.
Prices are dropping.
Most of these guys can make good money at $75bbl and below that they start to thin out.
A few years ago the oil industry in Kern county California said that they had pumped 10 billion barrels of oil since they started drilling. And they expect to pump another 10 billion more in the future.
You think there’s plenty of oil? Just wait until all the other oil producing countries start using our fracking methods. There is going to be a glut the likes of which Noah himself would be unable to describe.
Oil is the 2nd most common liquid on Earth after water. The mantle creates it, the fields replenish, we will never run out of oil.
Rockefeller made sure that oil was considered as an “organic substance” way back in 1894 to ensure he could claim it would someday run out - making Standard Oil far more money.
How much have we used since then?
How many dinosaurs and ancient trees have died on moons with methane (hydrocarbon) atmospheres?
If there's a worldwide glut of oil it's understandable why producers might lower production but our shale reserves dropping doesn't jibe with what I've read recently.
Industry articles I have read state that 40 dollars a barrel is Rock Bottom for meager profits. A result of efficiency gains directly related to significant improvements in extraction technology.
The same articles stated that the industry is most comfortable with 60 dollars a barrel. This price was said to be enough to allow the companies to hire and pay well and, to have enough to comfortably afford future investment in R&D while providing investors a nice return on investment.
Below 50 dollars a barrel the industry indicated they would experience stresses inhibiting future R&D as well as reduced investor return on investment.
Just not the demand there. Need a better world economy.
China making a big investment in fracking.
Nuclear and micro nuclear are the long term future. Earth processes from the core are the present and foreseeable future. Let the alarmists scream and pout, but don’t be one of them.
“How many dinosaurs and ancient trees have died on moons with methane (hydrocarbon) atmospheres?”
Are you cheerleading for the expiration of Her Thighness? Geriatric Joe Biden? Comrade Bernie?
And that is keeping big oil up at night.
It was a very closed system before. Only a few players, major government intervention, easy to manipulate the market.
Now, there are a lot of small wells all over run by small firms. These guys can’t stop pumping, they will die.
So that is why Saudi is dumping their only source of capital in a IPO. They see the future and that the price of oil is going to crash.
For those in the ‘green’ business, this is a nightmare. Expect law suits, terrorism, and massive threats by blue team .gov players to disrail the movement.
Eventually a few players will control the market again, and we will have high gas prices. But right now it will be cheap and destabilize the Middle East like nothing before the founding of Israel.
Good grief.
I guess you gotta make the money in those first 7 years.
And keep drilling for new deposits.
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