Oil Companies Wildly Overestimate Amounts of Recoverable Shale Oil
Oil Companies Wildly Overestimate Amounts of Recoverable Shale Oil
By Ashley Eady/Lubbock Avalanche-Journal / lubbockonline.com
May 22, 2014

The current US oil boom, from hydraulic fracturing of permeable shale formations, may soon be over, while the accompanying environmental damage will be around for years to come: "

"The curve of shale drilling is another big problem, Smith said. Shale play reserves are typically very thin in comparison to conventional wells, with layers of oil tightly sandwiched between layers of shale formation. Horizontal drilling of a shale play means the operator is going after the oil deposit from the side, which quickly draws the reserve away from the recovery point. The result is what Smith calls “an extremely dramatic decline curve.” Operators ultimately end up chasing the deposit sideways constantly, and the cost of drilling horizontally in pursuit of the ever-retreating reserve quickly surpasses the recovered oil return. “Eventually horizontal drilling is suspended because operators reach a point where they are just burning cash.” Smith said.

The Eagle Ford Shale, which is currently 85 percent declined, is a perfect example of the limitations associated with horizontal drilling, Smith said. On the long end, projections promoted by oil companies, Permian shale plays are expected to last 10 to 15 years, conservatively. Smith and his colleagues in the geology field expect drilling on the Cline shale to last no more than 18 months."

Of course, the longer the projected lifetime of the asset is, the higher dollar value there is for investors and the sales price of the asset is naturally higher as well.

0.0 ·
0

Support Films For Action

Films For Action empowers citizens with the information they need to help create a more just, sustainable, and democratic society.

We receive no government or corporate funding and rely on our supporters to keep us going. Donate today.

Trending Today
The White Man in That Photo
Riccardo Gazzaniga73,591 views today ·
Today I Rise: This Beautiful Short Film Is Like a Love Poem For Your Heart and Soul
4 min4,435 views today ·
10 Female Revolutionaries That You Probably Didn't Learn About In History class
Kathleen Harris3,437 views today ·
I Promise, It's Not Lame to Ask a Woman for Permission
Dave Booda957 views today ·
The Invention of Capitalism: How a Self-Sufficient Peasantry was Whipped Into Industrial Wage Slaves
Yasha Levine946 views today ·
How American Oligarchs Created the Concept of Race to Divide and Conquer the Poor
Courtland Milloy928 views today ·
This Facebook Comment About the UK Election Is Going Viral
Chris Renwick896 views today ·
John Lennon's "Imagine," Made Into a Comic Strip
John Lennon. Art by Pablo Stanley552 views today ·
Alan Watts: What is Wrong With Our Culture
5 min536 views today ·
Load More
Join us on Facebook
Oil Companies Wildly Overestimate Amounts of Recoverable Shale Oil