<< Chapter < Page Chapter >> Page >

Rapid decline rates in shale wells are not only reasons for caution in predicting U.S. oil independence over the next few years. Fracking as practiced in the U.S. is expensive ($5 million per well and up). High prices, reaching a peak of over $120 per barrel (2014) have attracted high investment levels in shale-bearing regions. Fracking operations turn out to be quite sensitive to oil prices. From June 2014 to mid-November 2014, oil prices per bbl. (Brent prices)

The reader should be aware that there are two distinct benchmark prices for petroleum: the Brent price and the price for West Texas crude. The Brent price (named after the Belgian port) is typically used in reference to prices in Europe, Africa, South Asia and parts of East Asia. The West Texas crude price is ordinarily quoted for U.S.-source crude.

The Brent price is typically 10% to 15% above that of West Texas crude. In July 2014, the Brent price was $115 per barrel, versus $106 for West Texas crude. Both prices dropped sharply by December 2014: the Brent price was $60/ bbl., while that for West Texas crude was $55. This figure is based on a sample of operating costs in eight large independent firms. Some firms, however, have costs exceeding $40/bbl. The sample is cited in the Economist, December 6, 2014. p.81.

fell by 30%, to $82.00 and then to $62.00/bbl. in mid-December. The International Energy Agency predicted that this price decline, if not reversed, could lead to a 10% decline at least in U.S. shale investments in 2015. This would eventually place at risk any sustained energy independence for the U.S. By January 2015 the price of Texas crude had fallen to $48.00/bbl. Even if oil prices were to fall below $50/bbl, wells that are already in place would continue to produce, because capital costs have already been sunk. Operational (variable) costs lie well below $50 for all but the most inefficient firms. Operational costs of independent drillers in 2014 averaged less than $20/bbl. This even at $50/bbl oil would continue to flow from wells already in place, but at the rapid decline rates noted above.

In any case, it is apparent that the combination of the innovation of directional drilling and octopus drilling with changes in fracturing practices that has been responsible for the huge recent increases in gas and oil output reserves in the U.S. and elsewhere, especially from shale formations.

By 2015 the shale boom in the quest for hydrocarbons has hardly begun in the rest of the world, especially in emerging nations (see Figure 15-6).

The reader may wonder why the discussion on shale, directional drilling/fracking has been presented in such detail. There is in fact a very good reason. These developments have already begun to materially change the world energy picture, not only as it pertains to developed nations, but to emerging nations as well. Notable environmental risks may also be involved. But that is not all. The reverberations from shale will resound down through the next 30 years, and will affect the lives of hundreds of millions worldwide.

Questions & Answers

how do they get the third part x = (32)5/4
kinnecy Reply
can someone help me with some logarithmic and exponential equations.
Jeffrey Reply
sure. what is your question?
ninjadapaul
20/(×-6^2)
Salomon
okay, so you have 6 raised to the power of 2. what is that part of your answer
ninjadapaul
I don't understand what the A with approx sign and the boxed x mean
ninjadapaul
it think it's written 20/(X-6)^2 so it's 20 divided by X-6 squared
Salomon
I'm not sure why it wrote it the other way
Salomon
I got X =-6
Salomon
ok. so take the square root of both sides, now you have plus or minus the square root of 20= x-6
ninjadapaul
oops. ignore that.
ninjadapaul
so you not have an equal sign anywhere in the original equation?
ninjadapaul
Commplementary angles
Idrissa Reply
hello
Sherica
im all ears I need to learn
Sherica
right! what he said ⤴⤴⤴
Tamia
hii
Uday
what is a good calculator for all algebra; would a Casio fx 260 work with all algebra equations? please name the cheapest, thanks.
Kevin Reply
a perfect square v²+2v+_
Dearan Reply
kkk nice
Abdirahman Reply
algebra 2 Inequalities:If equation 2 = 0 it is an open set?
Kim Reply
or infinite solutions?
Kim
The answer is neither. The function, 2 = 0 cannot exist. Hence, the function is undefined.
Al
y=10×
Embra Reply
if |A| not equal to 0 and order of A is n prove that adj (adj A = |A|
Nancy Reply
rolling four fair dice and getting an even number an all four dice
ramon Reply
Kristine 2*2*2=8
Bridget Reply
Differences Between Laspeyres and Paasche Indices
Emedobi Reply
No. 7x -4y is simplified from 4x + (3y + 3x) -7y
Mary Reply
is it 3×y ?
Joan Reply
J, combine like terms 7x-4y
Bridget Reply
how do you translate this in Algebraic Expressions
linda Reply
Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
Crystal Reply
. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
Chris Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
Hello
Uday
I'm interested in Nanotube
Uday
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
can nanotechnology change the direction of the face of the world
Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
Ali Reply
the Beer law works very well for dilute solutions but fails for very high concentrations. why?
bamidele Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Good
Got questions? Join the online conversation and get instant answers!
QuizOver.com Reply

Get the best Algebra and trigonometry course in your pocket!





Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic development for the 21st century' conversation and receive update notifications?

Ask