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?
For me it clearly demonstrates that significant increases in production will be very difficult to achieve.
Across the shale plays, the peak drilling year was 2014, when nearly 14,000 wells were drilled…..
In 2015 they drilled 10,000 new wells and ended the year with less production then at the start.
In 2016 they drilled 5,600 new wells and ended the year significantly below where it started.
The graph very nicely indicates that shale now declines 30% year on year and it will be financial suicide to drill the number of wells needed to achieve higher overall rates from shale.
Try the ‘well status’ tab – despite what you read in the press, it appears as though with time, more and more production comes from very poor wells – 85% of wells are now below 100 bopd.
Enjoy playing.
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
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