Tuesday, April 18, 2017

A Look At Soaring Sand Costs And Water-Disposal Expenses -- April 18, 2017

Active rigs:

Active Rigs512993188185

RBN Energy: soaring sand costs and water-disposal expenses threaten producer gains in key shale plays.
A typical shale well in the Permian now has a two-mile lateral (10,000-plus linear feet) and uses 15 million pounds of sand—that’s 1,500 pounds of sand per linear foot. We’ve been hearing that using 2,000 pounds of sand per linear foot is becoming more common in the Permian. Consider that for a moment; that’s like forcing a pickup-load of sand through perforations in a section of pipe the size of a two-liter bottle of Coke! And even greater use of proppant is a real possibility. In October 2016 Chesapeake Energy set a record by pumping more than 5,000 pounds of sand out of each linear foot of a 10,000-linear-foot lateral in a Louisiana well—and increased the well’s output by 70% over what would have been achieved through traditional sand use.
Amazing. Analysts bullish with $70-oil by year-end -- Rigzone.  Raymond James sill predicting that a 1-million-bopd drop in oil production will drive prices up. I still look at the huge amount of oil stored around the world. 

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