U.S. Oil-Production Rise Is Fastest Ever

The Wall Street Journal ^ | 18 January 2013 | TOM FOWLER

[usconservative]

I’ll bet they do. My friend who works at the refinery I described above says much the same thing. There’s zero tolerance for safety violations.

[ckilmer]

the other thing about the cline formation is that its much cheaper to extract the oil and get it to market. by how much? not sure. they say its the oil is shallower and nicely stacked in layers. plus the infrastructure to get it to market is available. likely the innovation with reusing water will lower costs too.

[PA Engineer]

the other thing about the cline formation is that its much cheaper to extract the oil and get it to market. by how much? not sure. they say its the oil is shallower and nicely stacked in layers. plus the infrastructure to get it to market is available. likely the innovation with reusing water will lower costs too.

Texas actually has many of the waste injection wells. This brings their average cost per well down substantially. In the Northeast, it adds about $800K average. We do have a substantial amount of infrastructure available for both Marcella and Utica. The problem here is the gathering lines are more like transmission.

[ckilmer]

Ohio seems to have plenty of oil more oil condensates. but isn’t Pennsylvania mostly about natural gas?

The point about cost is that sometime between now and 2016 the price of oil is going to swoon under supply pressure. the high cost drillers especially in the Bakken will have to lay off new drilling.