Shell recently announced a $300 million investment in a shale oil operation in Argentina: Shell opens treatment plant in Argentina shale play. Shell is developing controversial tight and shale oil and gas operations globally despite the significant financial and environmental considerations involved. Is this wise, or a sign of desperation? Shell is already on shaky ground with the NAM/Groningen project. There is a nice summary below of what we in the oilpatch already knew for years.
Production from fracced wells (in a shale like in the US) declines very fast. A well in the Middle East in a high permeable reservoir typically declines 3-10% per year.
Shale oil declines 35-50% per year. You need to keep drilling faster and faster until you go bust…..
And when the costs are high and returns are marginal, corners will be cut and other problems start. Polluted aquifers, operators going bust so who will clean up the mess?
US shale oil will keep prices low – will it ??
Give this 5 mins – it’s fun.
Excellent website link below, with great interactive charts on how the shale wells in US are doing.
These were supposed to keep the oil price low remember? read more
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