FRACKING is KING

The demise of the US shale fracking success is exaggerated. Colin Percival and Mike Cooper discuss some of the recent performance from data supplied by the excellent Novi Labs (novilabs.com/). The efficiency gains in horizontal fracking of shales has been extraordinary. The Permian Basin continues to dominate but elsewhere in the US other shale plays are benefiting from the technology learnings. Elsewhere in the world there is tremendous potential for fracking shale. The Vaca Muerta in Argentina and the shales of Saudi Arabia are two other stand out basins.
All of the information in this video can be found in TROVE databases. TROVE is a 'must have' for E&P companies working in this region.
Get in touch today to find out more about our TROVE databases - we'd be happy to arrange a demo: [e-mail] - www.1stsom.com
All images used in the video are open source. References are provided on-screen and can be found within TROVE.

[@mwgilmore9953]

Geez, you guys are the best, but maybe next time you do something on US fracking you could go a bit deeper (no pun). We invest and follow the major "pure" frack'ers (EOG, Devon etc.) and I can tell you it's been a bumpy ride ( Review Devon's journey from $77 to $38 a share). As an example, we called the Bakken peak at 1.5 M b/d as it's been struggling to stay at 1.3 M b/d for the last few years regardless of the longer laterals and a fairly constant rig count (Eagle Ford is right there with the Bakken). I mean, how about a discussion on the "Red Queen effect" in the shale patch: all the players are running to stand still! Even the mighty Permian with its 270+ rigs flying around struggled to add 14 b/d (yeah, that's fourteen barrels) to its production this month ( legacy wells lost 426000 b/d). Also, the wells are getting gassier; NGL's are coming out of the woodwork in place of crude (the Company's in their investor presentations keep touting boe to try and make everyone feel good - until the community realizes the low price one gets for NGL's vs crude). And don't forget the low EROEI of shale; the end of tier 1 inventory; the NatGas egress problems and the light crude capacity refining problem! There is more to chew on here guys, let's do this thing and help your followers really understand what is under the shale hood.

[@timthetiny7538]

Anyone who thinks shale is low EROEI is instantly discredited.
Maybe instead of "following shale players" you should still a few shale wells to get an idea of what's actually happening

[@mwgilmore9953]

@@timthetiny7538 Oh thanks; what EROEI do you get for shale, say, vs. conventional onshore? I'd appreciated your input.

[@timthetiny7538]

@mwgilmore9953 shale gas probably 30 or 50 to 1.
Oil is variable but it takes about 300,000 gallons of diesel to drill and frac a 2 miles wolfcamp lateral.
On a 750 MBO type curve, you're running something like 25 million gallons of liquid fuel (diesel and gasoline), 8 or 9 million barrels of natural gas liquids and a couple billion cubic feet of dry gas for electricity.

[@timthetiny7538]

8 or 9 million gallons of ngl. Not barrel*

[@mwgilmore9953]

@@timthetiny7538 thanks for the detail, but we add all the inputs when we do our financial analysis of EROEI: Frac sand processing and shipments (10,000 tons per frac; 110 tons per rail car; 24 tons per truck); 3 to 5 million gallons of Water for the initial frac (20k truck capacity); millions of gallons of water to process and dispose of from flowback and production. These inputs highlight the extraordinary effort required to bring fracked oil to the market compared to conventional "Beverly Hillbillies" oil, which is all I was trying to highlight in my first post.