Where horizontal drilling was key to unlocking shale — which Hamm dubs Generation 2 rock — a new wave of inventions will be needed to make Generation 3 rock productive, Hamm said. That includes drilling out the so-called tier 2 and tier 3 shale deposits, which are more expensive and require higher oil prices to be economical.
It also includes capturing carbon and pumping it back into the ground to make more oil flow, he said.
Those advances won’t be easy. Rising inflation gets built into the US oil industry so that it needs $75 to $80 a barrel to produce oil and gas, Hamm said. That’s a big difference after getting used to $60 oil.
My hunch: CO2 injection is not going to be all it's cracked up to be -- no pun intended.
Xom bought Denbury for the CO2 recovery , that Denbury has done for 30 years, and How Many Zillion $$$ did they pay.
ReplyDeleteExxonMobil Makes Major Move Into Carbon Capture With $4.9 Billion Acquisition, the Price of Denbury.
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