PowerSwitch

Hello again all.

This cannot be good news if it is true, extraction by fracking has got efficient:

http://www.telegraph.co.uk/business/201 ... tandstill/

Planet Earth Roastarama continues.

Edit. Oops. I see this article has already been linked to in General Discussion.

That is straight propaganda from the fracking companies and their financial backers.

Fracking is in a world of hurt. They have sunk hundreds of billions they are very unlikely ever to see again. One of the fracking fields is proving more productive than the others, but drilling is still down by 3/4 overall and production is falling. In another year US total production will be down by another million bpd at least.

The reason that production has held up this long is that fracking is a two stage process, first drill the well then frack it. A huge backlog of drilled but not fracked wells built up, so when drilling fell by 3/4 there was still a lot of fracking still to do, which kept new wells coming on line. Once that backlog is cleared, the very steep decline rates for the fracked wells will become much harder to hide.

PS_RalphW wrote:That is straight propaganda from the fracking companies and their financial backers.

Fracking is in a world of hurt. They have sunk hundreds of billions they are very unlikely ever to see again. One of the fracking fields is proving more productive than the others, but drilling is still down by 3/4 overall and production is falling. In another year US total production will be down by another million bpd at least.

The reason that production has held up this long is that fracking is a two stage process, first drill the well then frack it. A huge backlog of drilled but not fracked wells built up, so when drilling fell by 3/4 there was still a lot of fracking still to do, which kept new wells coming on line. Once that backlog is cleared, the very steep decline rates for the fracked wells will become much harder to hide.

That being the case I am surprised AEP fell for it.

More detailed discussion here

http://peakoilbarrel.com/open-thread-pe ... ent-577444

PS_RalphW wrote:That is straight propaganda from the fracking companies and their financial backers.

Fracking is in a world of hurt.

Is it? We have squeezed costs down so far that we make money at $38/barrel.

Hi fifth. Long time no see. If you are making money at 38 why is drilling down 75 percent with the price close to 50?

fifthcolumn wrote:... We have squeezed costs down so far that we make money at $38/barrel.

Who's paying for that? The neighbours and the environment?

PS_RalphW wrote:Hi fifth. Long time no see. If you are making money at 38 why is drilling down 75 percent with the price close to 50?

Thank you. PS If I'm grinding your gears in the other thread, please don't take it personally.