Why I Love To Blog -- Reason #36 -- Bakken 2.0 -- May 26, 2017 -- All That Talk About Peak Oil? Forget It

I suggested that "we" entered Bakken 2.0 on / about October 19, 2016, with the announcement of the Oasis-SM Energy deal. It was on that date I also added a new tag: Bakken_2.0.

Others have since said the same thing, but always calling it "Shale 2.0" -- not Bakken 2.0. That's fine.

Here's another example, sent to me by a reader.

As famed oil analyst Daniel Yergin said this week, there's been a "recalibration of costs" since mid-2014 that have let innovative U.S. producers make profits at far lower prices than ever before.

"When the prices started down, there was this widespread thinking $70 to $80 (a barrel, to be competitive)," Yergin told CNBC. "But it's been so innovative. It's almost like we're looking at Shale 2.0. It's almost a different industry than it was three years ago."

And forget all that talk about "peak oil."

That's changing all the calculations about how much oil is in the ground. Forget "peak oil": Just this month, the U.S. Geological Survey found the so-called Spraberry Formation in Texas holds 4.2 billion barrels of recoverable oil at current prices, not the 510 million barrels estimated 10 years ago.

From basically nothing in 2000, frackers today produce more than half of all U.S. oil on the market.