Posted on 08/27/2013 1:50:09 AM PDT by Laurent.w
As far as U.S. shale gas goes, it's pretty much living up to the talk: the newer plays are seeing strong recovery rates over large acreage, meaning gas will keep flowing.
That is not the case for shale oil.
Productivity of the newest plays to come on drillers' radars have not come close to what's been coming out of the Bakken in North Dakota and Eagle Ford in Texas.
And even for those two, he says, peak recovery rates of new wells drilled have been declining and flat, respectively.
As a result, drillers are moving on to less productive basins and lower-quality acreage.
"The prime locations have already been drilled," AllianceBernstein's Bob Brackett writes
"In order to maintain current levels of overall production, marginal conventional production must be maintained with high oil prices.
We expect marginal cost inflation will continue as well productivity declines, resulting in an oil price forecast that differs significantly from the forward curves. We forecast $96/bbl WTI for 2013, $101/bbl WTI for 2014, and longer term prices above $120/bbl and rising after 2017."
(Excerpt) Read more at businessinsider.com ...
FYI, Honda Civic Natural Gas
....because of surging demand from a roaring economy!!!!!
Never believe anyone that you do not know... either them directly or their reputation. obama and his overlord are pure evil... as are those that align themselves with their evil.
Well all I can tell him is it used to take about 36 hours to get my oil hauled, now it’s 3 to 5 days due to all the new production. My last 3 wells I’ve installed 3 500’s instead of the normal 2 due to these delays. Our wells up north of town are coming in at 300 to 400 barrels a day. We flow back into 1000 barrel frac tanks for about 3 months before we build the battery, production around here is steadly climbing.
Of course oil prices and everything else will got up because the dollars pumped into the failing economy by the Feds is inflationary no matter what the bankers claim.
Markets are markets.
Is that to get a good flow history prior to building tanks, or just a natural progression of using the infrastructure in place and not rushing to install tanks?
Is this article saying they expect the oil production component of fracking to relatively quickly peak and/or flatline? Or even decline?
Many people do not understand that tight formations like the shale plays of Bakken, Eagle Ford and others have a very steep production decline curve. Without a ample supply of new spots to keep producing new wells, the fields will not keep high production rates.
Mainly just due to the volume of return, when you have several hundred barrels of fluid coming up it can swamp a battery pretty quick. Once I’ve got one flowing good I hate to shut them in, I’ve seen them trash up with sand thats fallen back downhole.
Mainly just due to the volume of return
Just because I'm an overly inquisitive engineer always desperate to understand, that means to handle the high flow rates from the initial production before the well settles down?
When what happens? That list was from the point of those items already have happened.
You need to recognize that most people investing in the oil market do not agree with this prediction. That is why his numbers are so different than what is trading in the futures market.
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