PERRYMAN: A whale of a shale
oaoa.com
Posted: Sunday, May 19, 2013 6:00 am
M. Ray Perryman
If early estimates prove to be even close to true, the vast amounts of recoverable oil and natural gas will make the Cline Shale go down in history as the largest shale play ever.
Communities across the Permian Basin have already been feeling the effects of surging exploration activity, and indications are that the pace may pick up rapidly.
The Cline Shale is about 140 miles long, 70 miles wide, and 200-550 feet thick stretching through the Permian Basin and southward.
Test wells are exceeding expectations and indicate the shale could contain 3.6 million barrels of recoverable oil per square mile or as much as 30 billion barrels in total. Yes, billion. That’s multiples of the likely production from other well-known shales such as the Bakken up north or the Eagle Ford here in Texas.
Shale formations such as the Cline are still a relatively new source of oil and gas production. Hydraulic fracturing (fracking) and other improvements in drilling tools and techniques have been crucial to opening up these fields...
...The Cline is the newest shale to emerge as a major site of activity. Even apart from the sheer magnitude of the recoverable reserves, the mix of oil, dry gas, and liquids is particularly favorable given the high oil price environment. In addition, operating costs in the Permian Basin are lower than in some of the other shales, and a longstanding network of suppliers, service firms, and other necessities for the business is already in place... |
