Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: thackney

key points.....

“What not everyone knows is that horizontal drilling techniques and hydraulic fracturing currently recover less than 20% of the oil in place, and in some places even less than that.

Total production costs have fallen from around $80 a barrel three years ago to around $50 to $60 a barrel today at the most advanced producers’ sites. As WTI prices continue to slide, wringing out production costs will become more important than ever. Energy consulting firm Bentek has said that even if oil prices fall to around $60 a barrel production will continue to grow.”


2 posted on 11/17/2013 5:49:12 PM PST by ckilmer
[ Post Reply | Private Reply | To 1 | View Replies ]


To: ckilmer

Production cost do not include exploration cost, ie, reserve replacement cost.


10 posted on 11/17/2013 6:20:36 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 2 | View Replies ]

To: ckilmer

This may help explain the difference and why one cost is discussed separately from the other.

http://www.ey.com/Publication/vwLUAssets/US_E_and_P_benchmark_study_-_June_2012/$FILE/US_EP_benchmark_study_2012.pdf


13 posted on 11/17/2013 6:24:57 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 2 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson