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Gold/Mining/Energy : Big Dog's Boom Boom Room

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From: Black Blade	3/5/2019 10:29:46 PM
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Shale Companies In Turmoil As Newer Wells "Drink Their Milkshake" ................................................................................................................... Snippit: US shale companies' decision to drill thousands of new wells closely together - and close to already existing wells - is turning out to be a bust; worse, this approach is hurting the performance of wells already in existence, posing an even greater threat to the already struggling industry. In order to keep the United States as an energy supplying powerhouse, shale companies have pitched bunching wells in close proximity, hoping they would produce as much as older ones, allowing companies to extract more oil overall while maintaining good results from each well. These types of predictions helped fuel investor interest in shale companies, who raised nearly $57 billion from equity and debt financing in 2016 – up from $34 billion five years earlier, when oil was over $110 per barrel. In 2016, oil prices dipped below $30 a barrel at one point. And now - surprise – the actual results from these wells are finally coming in and they are quite disappointing. Newer wells that have been set up near older wells were found to pump less oil and gas, and engineers warn that these new wells could produce as much as 50% less in some circumstances. This is not what investors - who contributed to the billions in capital used by these companies back in 2016 - want to hear. Continued: zerohedge.com Black Blade: From "Down-Spacing" back to "Up Spacing". We had similar problems in the Bakken and Eagle Ford when during the fracks we would encounter adjacent zones that were previously fracked. Cause some serious pressure losses limiting production. This was back in 2014 and in the case with one of our wells in the Eagle Ford we hand to flare off a huge zone of natgas for well over 2 and half months as the fire ranged on from the gas buster. All we could do was watch and wait as the natgas bled off. Almost considered getting a wild well control specialist out there. The end result was a huge monetary loss from rig downtime, soaring costs due to lost production and the eventual closure of the well after containment.

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