Author Topic: North American Shale Growth Faces Setbacks Despite Rise  (Read 783 times)

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Offline IsailedawayfromFR

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North American Shale Growth Faces Setbacks Despite Rise
« on: March 08, 2018, 01:29:10 pm »
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U.S. shale plays have recently moved production into record territory, but industry leaders speaking at CERAWeek by IHS Markit issued a few warnings during its run to the top.

Mark Papa, Centennial Resource Development’s CEO, expressed geologic concerns over prominent U.S. shale plays during a panel discussion March 6.

“I really view the Eagle Ford and the Bakken as approaching the point where they would soon be past their prime,” said Papa, who recently returned to the industry after his retirement from EOG Resources in 2013.

As certain assets in the Eagle Ford, Permian Basin and Bakken remain popular focal points of drilling, Papa said output will be threatened going forward. Though U.S. production growth has fostered many optimistic predictions, Papa argued that overactivity will hinder output than expected moving forward to 2020.

“Out of those three plays, I think we’re approaching a sense of quality resource exhaustion in two of those plays [particularly] the Eagle Ford and Bakken,” Papa said. “A hot percentage of the tier one geologic quality locations have already been drilled, and I would say 70% of the good geologic locations have already been drilled.”

For E&Ps moving forward in the popular plays, Papa said they are essentially getting the scraps because the remaining 30% of good rock will be drilled, leaving tier two and tier three rock that lacks quality. As a result, he said he expects a lot of capital to be pushed into the shale plays between 2018 and 2020.
https://www.epmag.com/ceraweek-north-american-shale-growth-faces-setbacks-despite-rise-1688421
The bottomline:  We are running out of good geology for continued oil growth.

Look for oil price rising in the 2020s as OPEC reasserts control over world resources.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington