Posted on 12/02/2014 2:39:27 PM PST by bananaman22
What does it take to build up a new region for oil and gas development? Obviously, the resources have to be in place and economically recoverable. But it is not as easy as just sticking a drill into the ground and pumping out oil and gas.
Even with significant oil and gas reserves trapped in shale, a variety of factors need to come together to turn a given region into a significant producer. To begin with, there needs to be enough companies willing to take risks on major drilling projects. Next, there needs to be enough capital behind those companies to make projects viable. And once explorers find and prove commercial quantities of oil and gas, there needs to be infrastructure in place to move the energy to market.
That last piece – building the storage tanks, compressor stations, and pipelines that will transport product to refineries – is a sure sign that a region is starting to make a name for itself. Only when it becomes apparent that oil and gas will be recovered in significant volumes will companies put millions of dollars on the line for the infrastructure.
This combination of full exploration and development along with infrastructure build out is beginning to happen in the Montney Shale, a formation that stretches across western Alberta into northeast British Columbia. The area is expected to hold 450 trillion cubic feet of natural gas and 14.5 billion barrels of natural gas liquids and 1.12 billion barrels of oil.
(Excerpt) Read more at oilprice.com ...
Five million Mexicans — headed your way!! Jobs! Jobs! Jobs!
I bet they wait until May/June...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.