Posted on 06/01/2014 3:49:02 PM PDT by ckilmer
Beware the BOPDE numbers. The only part that makes any money is the “O” part.
Horizontal gets fracked also
And this article is misleading. These horizontal wells are fraced as well. Or they wouldn’t make anything.
Yes, it’s very awkward when you do it vertical.
Oh ?
Sorry ... wrong thread ...
Correct me if I’m wrong, but I think that what distinguishes the Permian Basin, I think, from the Eagle Ford and the Bakken
is that Eagle Ford and Bakken have mostly been derisked. That is, for the Bakken and Eagle ford the drillers know where all the most profitable oil is and understand the best economics for oil extraction at these locations—including spacing drill depth etc. As a result both the Bakken and Eagle Ford are in production phase.
This is not so for the Permian.
Even though much of the new horizontal drilling in the USA is being done in the Permian Basin—drillers do not have the permian derisked.
As a result, no safe estimates can be made for the amount of oil that can be extracted at what speed and at what price from the Permian. The Permian has not been derisked.
But you can see from the article the areas of concentration in the Permian.
If there is going to be any serious growth in US oil production after the end of 2015—it will have to come from the Permian Basin.
Will that happen?
Beats me but the Permian is where the big story is for the rest of this year and next—because we’ll learn just how much & how fast the oil can be extracted in the next 12 months or so.
( As a side note, EOG Resources is doing an immense amount of drilling in their derisked parcels in the Eagle Ford this year)
There are some areas in Grayson County that have fairly well de-risked as well.
Rapid growth in production; imperceptible decline in price at the pump.
derisked parcels
- - - - -
From my perspective, that is a term made up to get more investors.
The growth in production is due to the relatively high prices for the oil. We wouldn’t be producing from the expensive shale fields if the prices were falling deep.
We have China, India and Brazil to thank. Were it not for those booming economies, OPEC would drive down crude prices and drive U.S. domestic unconventional exploration and production out of business. As it stands, OPEC doesn't need to worry about declining U.S. imports.
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For those who want to see a video showing how horizontal drilling and fracking is done, Northern Gas and Oil has a great one. It’s 6 minutes.
It includes a visual piece on how fresh water aquifers are protected from contamination.
http://www.northernoil.com/drilling-video
Here in SW Pa there seems to be a well every half mile or so ... pretty close IMO.
are these directional wells ?
If so ... is one deeper than another and etc, thereby getting maximum "coverage" from a small area ... i.e. ... #1 is a half mile deep before turning ... #2 is 3/4 mi and turns maybe 30 degrees from #1 ... #3 is 1 mile and directional is 30 degrees from #2 ..... etc.
So if you spy down from above you see a "ray" of directionals
Or am I inventing things ?
derisked parcels
- - - - -
From my perspective, that is a term made up to get more investors.
...............
I’m sure that the word “derisked” in the hands of someone like McClendon is a term made up to get more investors.
But How about EOG Resources? Any map of the most productive areas of the Eagle Ford will show that its a long narrow cresent arc. EOG is doing now a massive amount of drilling in that crescent. I have not heard them use the word “derisk” but the confidence of their drilling methodology suggests that “derisked” is the appropriate way to characterize their drilling.
http://www.bizjournals.com/houston/news/2014/05/08/eog-resources-ceo-lays-out-ambitious-eagle-ford.html
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May 8, 2014, 11:10am CDT
EOG Resources CEO lays out ambitious Eagle Ford drilling schedule
Houston-based EOG Resources is planning to drill more than 500 wells in the Eagle Ford Shale as part of its long-term exploration strategy.
EOG Resources Inc. (NYSE: EOG) will drill 520 wells in the Eagle Ford Shale this year, completing the “vast majority” of its 2014 drilling obligations in the basin’s oil-rich section by July, its top officer told analysts.
“We’re currently running 26 rigs in the play,” CEO Bill Thomas said on an earnings call this week.
The key phrase her is "may be as much as". Last time I invested in a Texas oil company they used the stock book as a check book to pay their living expenses.
They can do just about anything with directional drilling.
The largest step-rate technological advances That have given us access to huge added amounts of economically-extract able oil I have witnessed in the oil industry in past 4 decades(not in any order):
1.3 dimensional seismic( we can image what we used to have to drill to see)
2. Deep water drilling and production(be cause most of the world is underwater and oil exists there too)
3. Horizontal drilling (now we can explore and develop other than vertically)
4. Stage fraccing(cause the rocks are now so low quality we must create our own permeability)
I dream of what might transpire during the next 40 years
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