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Thursday, June 27, 2019

Notes From All Over -- Part 3 -- June 27, 2019

From Bloomberg:
The U.S. will account for almost a quarter of global oil and gas production by the early 2030s as the shale boom keeps on booming, according to the head of Rystad Energy.
Output from shale including crude oil, condensate and natural gas liquids could climb to as high as 25 million barrels a day, Jarand Rystad, chief executive officer of the research and intelligence company, said in an interview in Kuala Lumpur. The U.S. will likely make up about 23% of global liquids production and pump 27% of the world’s gas by then, he said.
Part of the reason for the expected growth is that companies are getting better at hydraulic fracturing, the process of pumping a mixture of water and sand into a horizontal well to create millions of tiny cracks in the shale rock that allow oil and gas to flow to the surface. Frackers are using more sand, creating more cracks and boosting the productivity of each well, Rystad said.
And then this:
“It’s about sand, horsepower and water injection,” he said at the Asia Oil & Gas Conference. “Those three parameters are what’s driving activity levels, and those are three times higher today than they were back in 2014.”
Perhaps.

But I think there's more to it than sand, horsepower, and water injection.

Wow, wow, wow -- look at this, the parent-child interference issue or as I call it, the "halo effect."
Looking ahead, Rystad’s optimism is also based on a recent study he’s done on the so-called parent-child interference issue, a concern that drilling a new well too close to an older one will reduce pressure in the original and cut output. While the results were mixed, overall the study showed that companies can stack wells more densely, creating enough drilling locations to support 10 to 15 more years of output growth, he said.
So much more at the link.

2 comments:

  1. Lib'rul peak oilers be bumming! Paging Mason Inman. Haha!!!

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    1. Mason Inman is an award-winning journalist who focuses on energy and climate issues. He has written for National Geographic News, Science, Nature, and The Economist, and has reported from Bangladesh and Pakistan. He lives in Oakland, California. Mason Inman wrote “The Oracle of Oil," an M. King Hubbert biography. Yes, that "Hubbert."

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