Hughes Shale Reality Check on Oilprice.com
February 9, 2018
Post Carbon Fellow David Hughes’ new Shale Reality Check report was reported in this article at OilPrice.com.
From the article:
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The report argues that while U.S. oil production has doubled from 2005 levels, and shale gas has also exploded over the same timeframe, there are underlying problems that will always bedevil shale production. For instance, shale wells typically see production deplete by 70 to 90 percent in the first three years, while fields see output drop off by about 20 to 40 percent per year without new drilling.
That means that the industry has to constantly plough more money back into production, just to keep output flat.
At the same time, not every shale well is the same. The core areas, or “sweet spots,” typically make up just 20 percent of a given shale play. When shale drillers move beyond the core, they tend to post less impressive production figures.