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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (101657)	6/27/2013 6:05:28 PM
From: selivanov	4 Recommendations Recommended By arun gera bart13 Haim R. Branisteanu Joseph Silent Read Replies (3) \| Respond to of 220289

Gee, all that oil and the price of gas at the pump keeps going up. All your predictions of cheap gas have been completely wrong. Now can you tell me where perhaps billions of barrels of fresh water come from for future fracking operations? Right now, the backlog in well completion in North Dakota is due to the wait on fracking crews and materials - I believe there are over 470 wells waiting to be fracked right now. Where are they going to dispose of the used frack fluids? Trucking it to some disposal well far away has to be painfully expensive Most of these wells produce somewhere around 80-90 bbls per day of oil and/or gas equivalent. Compare this to the screamers of yesteryear where a straight hole punched in the ground produced thousands/tens of thousands/hundreds of thousands of BBL's day. Yes, there is a huge shale resource but it's a lot like having an infinitely large slurpee cup with a thin amount of soft drink dispersed within it - you can see the brown tinge of the Cola, you know the Coke Cola is there in vast quantities, and yet you have to keep moving your straw around after the first sip to get another hit. Every insertion of the straw and area of Coke around the suction point turns white almost immediately, and then you have to pull your straw out and stick it in another spot for the one-time inhalation of sugary goodness. This is the shale situation. The steel and manpower used for drilling operations; both are becoming more expensive as time goes on, naturally. Where are companies going to come up with sufficient capital to afford to drill with these two expensive items? Those shale wells that do qualify as screamers - and there are quite a few of them - often deplete at astoundingly fast rates (up to 65%/year) and it becomes a real question as to whether they pay themselves off in some cases. In other cases, they produce for long periods of time but it is often a case if a well workover and re-frac are justifiable given the payback rate; Ur an expert, i know, so i expect answers.