To: elmatador who wrote (2624 ) 6/23/2019 6:43:52 AM From: Elroy Jetson Read Replies (1) | Respond to 1.) Most California oil deposits are sandstone rather than shale, which is the first misinformed aspect of the screed you posted.2.) Even though most California wells are not shale, that posting is greatly misinformed even for most tight shale-oil regions because virtually all shale deposits outside the Permian Basin are not economic at current oil prices, which will become increasingly clear as these companies file for bankruptcy. They're burning through capital and the sales of the oil recovered is not replacing it.3.) The Permian Basin is incredibly special in that it includes more than 15 different oil reservoirs between 6,000 feet and 10,000 feet deep. Not even the Delaware Basin has this number of reservoirs and the amount of recoverable oil. The Delaware Basin probably remains profitable in general currently, but there will be corporate fatalities there too. 4.) Oil recovery costs in the Permian have already been reduced close to $15 a barrel which is going to shut down a lot of other producing areas around the world - Azerbaijan is one such casualty. Chevron has diverted almost all of their drilling budget to the Permian and the Gulf of Mexico offshore.5.) Oil producers in California have long used enhanced oil recovery techniques, injecting steam, water and carbon dioxide , into these sandstone formations many of these techniques are included in what is now called fracking. Chemical recovery, which is a very costly technique which only pencils out when the price of oil is very high is rapidly becoming prohibited everywhere.6.) Oil deposits in California are not tight , so the fracking technique of injecting sand into hydraulically fractured deposits is rarely useful. The oil which is not recovered is attached to the sand even after steam injections.
