China Oil Find Could Trigger Shale Drilling Surge

[thackney]

China Oil Find Could Trigger Shale Drilling Surge
https://www.rigzone.com/news/wire/china_oil_find_could_trigger_shale_drilling_surge-19-feb-2019-158188-article/
February 19, 2019

An oil discovery in a remote corner of northwestern China could trigger a surge in shale drilling, benefiting service companies and providing a needed output boost for the world’s biggest importer, according to analysts at Morgan Stanley.

PetroChina Co. has achieved daily output of 100 tons of oil (733 barrels) at a test well in the Jimsar field in Xinjiang province, suggesting that shale oil has strong commercial potential in the nation for the first time, analysts including Andy Meng said in a Feb. 18 note.

China has had some success in producing shale gas, but advancing on shale oil would be a particular help to the world’s largest crude importer, which has seen output decline since 2015 even as the country’s leadership extols the virtues of energy self-sufficiency. Still, it’s unlikely China will be able to scale the heights of U.S. shale, which accounts for about half of American production, Morgan Stanley said.

The bank estimates shale oil output in China could reach about 100,000 to 200,000 barrels a day by 2025 -- still a sliver of total output. By comparison, the U.S. produced 8.3 million barrels a day in February, according to Rystad Energy....

[IsailedawayfromFR]

If getting oil out of the Permian gives us headaches, just think what getting it out of a remote area of a third world country like China will be.

[thackney]

If getting oil out of the Permian gives us headaches, just think what getting it out of a remote area of a third world country like China will be.

I can imagine.  I was part of the team developing a remote area in Yemen, through the mountains.

[IsailedawayfromFR]

I can imagine.  I was part of the team developing a remote area in Yemen, through the mountains.

Yeah, what they call roads is nothing more than the path that has been taken for centuries.  Certainly not pavement.

[InHeavenThereIsNoBeer]

I can imagine.  I was part of the team developing a remote area in Yemen, through the mountains.

I'm curious.  What provides a bigger challenge, rough terrain, or favorable terrain but dealing with the Department of Redundancy Department at every step?

[IsailedawayfromFR]

I'm curious.  What provides a bigger challenge, rough terrain, or favorable terrain but dealing with the Department of Redundancy Department at every step?

Both are big challenges, but different.

An engineer can overcome the former with money, time and ingenuity.

The latter can damn near be impossible as it is rooted in other than engineering principles.  Example is http://www.gopbriefingroom.com/index.php/topic,351790.0.html

[thackney]

Yeah, what they call roads is nothing more than the path that has been taken for centuries.  Certainly not pavement.

We were 60 miles from the nearest paved road.  But that was really paved, major North-South route in the middle of the country to Say'un from Al Mukalla.  We had to upgrade the hairpin turns through the mountains.  A thousand years from now, those stone expansions are what will still remain of our work.

[thackney]

I'm curious.  What provides a bigger challenge, rough terrain, or favorable terrain but dealing with the Department of Redundancy Department at every step?

Essentially no government involvement at all, 1992-1994.  At least up until the civil war started back up.  Then we had "protection". 

Government soldiers that waved anyone through the check point that stopped. 

They set up between the facility and the check point.  Those not stopping were fired upon with AK-47, full auto.  The first contractor that decided not to stop for these 14 year old kids wearing a soldier shirt and a home-made skirt had the tires shot out before they made 50 feet.  Everyone else stopped and waved from then on.