Posted on 04/07/2025 8:10:18 AM PDT by marcusmaximus
Very good. Excellent.
But in those days it was . . . “conventional” rock. Not shale. You don’t get much drainage in shale. Oil does not move horizontally because the rock . . . shale rock . . . lacks what is called permeability. Conventional rock has permeability (interconnectedness of the pores in the rock containing oil). Shale requires artificial permeability to get it to flow oil (that’s what fracking is, artificial permeability).
So in shale, the oil will not drain to you. You have to frack it.
In contrast, the original wells in Ghawar (the uber big field in Saudi Arabia) tapped in 1950 still flow oil, and at greater barrels/day numbers than shale wells on day 1. They just have far superior rock.
I was trying to make a joke.
The higher the better. It is not about “feeling secure” in my job, it is about raising money from investors who are being asked to commit millions of dollars to a project where the revenue stream can be completely turned upside down by a careless tweet or a stealth deal with OPEC.
A shale well in my neighborhood costs around $2.5 Million to drill and another $3 or 4 Million to complete and frac. That doesn’t include cost of tanks, facilities and pipelines. It makes it very difficult to convince investors to invest $6 or 7 Million per well when their rate of return cannot be calculated with some relative certainty.
Personally, I think $75 to 80/barrel is a fair price at which operators can make returns and consumers can afford gasoline/diesel. State and federal excise taxes and other artificial costs are a real issue artificially inflating the true cost of production and refined products.
Ultimately, if left alone, the market will find a price that allows producers to make money and consumers to afford energy.
If it gets low enough Trump can refill the SPR.
This is the 5th article on this you have posted today:
https://freerepublic.com/tag/by:marcusmaximus/index?tab=articles
Kinda spammy.
Yes if it’s below $69.00 a barrel they have no profit margin.
Got it. Thanks.
PA used to be the oil capital of the US. Things change.
I heard From a friend who used to work at a refinery that in the summer the butane is removed.That’s why the mileage decreases, in the winter the butane is put back in to enrich the gas for better firing in the colder weather.
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