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
Trending Today
Organizing in 'Small Town USA'
Liberation Staff4,451 views today ·
Your Lifestyle Has Already Been Designed (The Real Reason For The Forty-Hour Workweek)
David Cain4,068 views today ·
Colin Kaepernick Is Being Blackballed by Billionaire NFL Owners. Here's Why.
Colin Jenkins3,272 views today ·
Kate Tempest's Powerful Intro to Glastonbury 2017
2 min2,806 views today ·
Americanism Personified: Why Fascism Has Always Been an Inevitable Outcome of the American Project
Colin Jenkins2,521 views today ·
This Facebook Comment About the UK Election Is Going Viral
Chris Renwick1,785 views today ·
This Stunning Animation Beautifully Illustrates the Secret Life of Flowers
4 min1,449 views today ·
Oliver Stone's Inspiring Speech on War, Peace and Speaking Your Truth
3 min1,214 views today ·
Sophisticated Psychological Profiling is The New Tool Being Used to Influence Elections
13 min1,209 views today ·
Load More
What's Next
FLOW: For Love of Water (2008)
80 min
17 Days In Community: A Manifestation of Love (2014)
55 min
The Fuck-it Point (2012)
42 min
Like us on Facebook?
Oil Companies Wildly Overestimate Amounts of Recoverable Shale Oil