Shale Oil: A Trend That Is Redefining The Cost Of Supply
Summary
“Array fracking” has arrived: operators increasingly use a full-volume approach to stimulating thick or stacked shale formations.
With dozens of wells typically drilled and completed off the same pad simultaneously, operational efficiencies are powerful.
The elimination of “over-capitalization” – drilling less wells to recover the same amount of oil – is the next big saving the industry is likely to realize in full development.
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... economies of scale in full development mode in stack-pay plays promise to be very powerful.
The North American shale oil industry will see its cost of supply go further down in the next few years. By the same token, the shale's economic footprint will expand significantly.
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