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Fracked wells have awful production curves. It will be done a few years after they run out of permian to drill. No gentle dropoffs like traditional reservoirs.
by throwaway5752 8y ago
Fracked wells have awful production curves. It will be done a few years after they run out of permian to drill. No gentle dropoffs like traditional reservoirs. Though, I'm just an interested bystander, so if any petroleum geologist know of changes that contradict I'm happy to be corrected.
- 2sk21 8y agoAgreed - fracking only makes sense as long as its easy to borrow money
- throwaway5752 8y agoIt's truly scary. US will get accustomed to the increased domestic capacity and lower prices, and then have the rug pulled out from underneath.
- kthejoker2 8y agoWhy so gloomy? Something like 6-8 billion barrels in the Permian, we're talking at least 15-20 years out before it's even remotely an issue. Lot more short term and medium them effects to consider before optimizing frack jobs.
- rcMgD2BwE72F 8y agohttps://assets.bwbx.io/images/users/iqjWHBFdfxIU/izx7rgFSlvyQ/v1/660x-1.png https://assets.bwbx.io/images/users/iqjWHBFdfxIU/izx7rgFSlvy... From https://www.bloomberg.com/news/articles/2017-08-08/shale-exploration-production-company-earnings-confidence-game https://www.bloomberg.com/news/articles/2017-08-08/shale-exp... >Here is the free cash flow after capital expenditure for a sample of 33 E&P companies, grouped by their main shale basin (all figures compiled by Bloomberg). >It doesn't require the closest examination of that chart to see fracking is very capital intensive, with E&P firms spending way beyond their means even in the relatively halcyon days of 2012 and 2013. The 14 Permian-exposed companies in that sample saw their cash burn accelerate over the past 12 months to a collective $11.5 billion.