Buh Bye OPEC

Started by Solar, June 17, 2018, 08:33:53 PM

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Solar

More great news!
It appears that fracking tech has spilled over to old played out oil fields. :thumbup:

"The application of new technology to older plays is a winning bet," Drew Cozby, Wildhorse's finance chief, said in an interview.

After shale producers pushed U.S. oil and gas output to all-time highs, some are now taking what they have learned to fields that until recently were considered played out.
Production from the Austin Chalk jumped to 57,000 barrels per day (bpd) last year from 3,000 bpd five years ago and up 50 percent from the previous year, according to consultancy Wood Mackenzie, which expects rapid production gains to continue.

The number of drilling rigs in the Austin Chalk has doubled in the past six months to 14, according to data from energy researcher DrillingInfo.

Wildcatters first pumped oil from the Austin Chalk nearly a century ago, but output reached its peak in the early 1990s even though the formation still contains about a billion barrels of crude, according to U.S. government's Geological Survey.

That is not unusual. Oil producers have historically extracted less than half the oil from any particular field because the rest has not been accessible at a profit.

That is changing in fields like the Austin Chalk.

Based on test wells and modeling techniques, Conoco believes long, horizontal wells with multiple fracks - a technique used often in shale fields - will deliver strong results from its acreage in the Austin Chalk.

"What we were seeing with some of the newer technologies work really well in the Austin Chalk," Conoco Chief Executive Ryan Lance told Reuters.

Some wells they have fracked in the Austin Chalk have produced more prolifically than shale wells. Wildhorse's newer Austin Chalk wells produced more than three times the initial output of wells at the Eagle Ford shale field, the company said this month.

More~~~

https://www.reuters.com/article/us-usa-oil-austinchalk/u-s-oil-firms-use-shale-know-how-to-revitalize-old-oilfields-idUSKBN1JA2UG
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Walter Josh

Quote from: Solar on June 17, 2018, 08:33:53 PM
More great news!
It appears that fracking tech has spilled over to old played out oil fields. :thumbup:

"The application of new technology to older plays is a winning bet," Drew Cozby, Wildhorse's finance chief, said in an interview.

After shale producers pushed U.S. oil and gas output to all-time highs, some are now taking what they have learned to fields that until recently were considered played out.
Production from the Austin Chalk jumped to 57,000 barrels per day (bpd) last year from 3,000 bpd five years ago and up 50 percent from the previous year, according to consultancy Wood Mackenzie, which expects rapid production gains to continue.

The number of drilling rigs in the Austin Chalk has doubled in the past six months to 14, according to data from energy researcher DrillingInfo.

Wildcatters first pumped oil from the Austin Chalk nearly a century ago, but output reached its peak in the early 1990s even though the formation still contains about a billion barrels of crude, according to U.S. government's Geological Survey.

That is not unusual. Oil producers have historically extracted less than half the oil from any particular field because the rest has not been accessible at a profit.

That is changing in fields like the Austin Chalk.

Based on test wells and modeling techniques, Conoco believes long, horizontal wells with multiple fracks - a technique used often in shale fields - will deliver strong results from its acreage in the Austin Chalk.

"What we were seeing with some of the newer technologies work really well in the Austin Chalk," Conoco Chief Executive Ryan Lance told Reuters.

Some wells they have fracked in the Austin Chalk have produced more prolifically than shale wells. Wildhorse's newer Austin Chalk wells produced more than three times the initial output of wells at the Eagle Ford shale field, the company said this month.

More~~~

https://www.reuters.com/article/us-usa-oil-austinchalk/u-s-oil-firms-use-shale-know-how-to-revitalize-old-oilfields-idUSKBN1JA2UG
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Solar, an observation.
A colleague from the Middle East told me that oil from the shale
basins is greatly preferred, as it carries a much higher margin than
that of non-shale oil, for a simple reason.
The shale has been filtering the oil for millions of years, making it
lighter(less viscous) and purer (less minerals) allowing it to be
turned into downstream product very quickly; where the largest
profits are made in oil and gas, both in the USA and abroad.
These products include diesel, jet fuel, gasoline, synthetic rubber,
plastic, fertilizer, pesticides, medicines; among many dozens.
As such, shale oil holds an enormous marketing advantage for the USA.

Solar

Quote from: Walter Josh on June 18, 2018, 01:35:20 PM
----------------------------------
Solar, an observation.
A colleague from the Middle East told me that oil from the shale
basins is greatly preferred, as it carries a much higher margin than
that of non-shale oil, for a simple reason.
The shale has been filtering the oil for millions of years, making it
lighter(less viscous) and purer (less minerals) allowing it to be
turned into downstream product very quickly; where the largest
profits are made in oil and gas, both in the USA and abroad.
These products include diesel, jet fuel, gasoline, synthetic rubber,
plastic, fertilizer, pesticides, medicines; among many dozens.
As such, shale oil holds an enormous marketing advantage for the USA.
Agree, unlike tarsand from Canada, shale oil considered sweet crude. The upside is there is little left over after processing, so almost all of it has a market, not to mention, it cost virtually nothing to move it as opposed to a taker taking weeks to cross the ocean, where prices can drop during transit, eating profits daily.
We now control the market, or will by the end of summer. Now we need a couple more refineries so gas prices will drop.
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Cryptic Bert

Is this why the Suads have been snuggling up to the Russians?

Solar

Quote from: The Boo Man... on June 18, 2018, 09:29:40 PM
Is this why the Suads have been snuggling up to the Russians?
In what way?
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supsalemgr

Quote from: The Boo Man... on June 18, 2018, 09:29:40 PM
Is this why the Suads have been snuggling up to the Russians?

I don't understand why the Saudis would warm up to Russia. They both have the same goal - sell more oil. Also the US has better military stuff for the Saudis.
"If you can't run with the big dawgs, stay on the porch!"

Solar

Quote from: supsalemgr on June 19, 2018, 05:26:17 AM
I don't understand why the Saudis would warm up to Russia. They both have the same goal - sell more oil. Also the US has better military stuff for the Saudis.
Not to mention, the S/A Prince recently allied with the US, Israel, Jordan etc. against Iran/Syria, Russian puppet States.
If anything, the Prince is trying to normalize relations in the M/E to bring about the Trump plan of peace in the M/E.
If anyone can bring peace to that shit pit, Trump can.
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