Thanks. Maybe inaccuracies triggered the near total re-write.
What West Texas producers are saying about $40 oil
"Current prices do not justify continued drilling in the U.S. for oil. Period," said Steven Pruett, chief executive of Elevation Resources, a mid-sized Permian Basin producer backed by private equity...Standing in front of one of those towering rigs, Pruett said the company is already debating whether it will stay in use: "With $40 a barrel, we have to reassess whether we can continue to justify running this drilling rig to drill new wells. It's not very exciting to put $7 million in the ground with the prospect of recovering that $7 million over 50 years."
good comments on production decline concept from unconventional reservoirs
Time Is Running Out on U.S. Frackers
In the second quarter of 2015, 83 percent of U.S. onshore oil producers' operating cash flow was used for debt servicing, according to the U.S. Energy Information Administration -- about twice the level of early 2012.
Interesting monthly video series: http://www.ugcenter.com/ugc-connect-series
http://www.ugcenter.com/videos/completion-effectiveness-819491
Nice posting on some generalized comments of certain technologies. The packers plus approach vs perf and plug is and will be one of the ongoing debates in the industry as to how best to complete in certain reservoirs.
But no one technology is the ultimate answer to all situations. And study needs to be able to break out specific sub areas of any play / target interval and not mix apples and oranges in any set of results (IMO)
One needs to keep in mind that each formation is unique as to how it can be best completed and that there can be a lot of differences in the same formation in the same area, e.g. the Wolfcamp in the Midland Basin can probably be broken into several different "sub areas" each of which is unique and has to be exploited differently due reservoir variability.
And we aren't even getting into the issues of landing zones and results - a difference of 100' in a wellbore's landing zone can result in a 100% change in EUR of the life of the well.
I am intrigued by it all. I didn't realize until recently there was such a thing as a stacked multi-lateral well. I would like to see a cost per drilled foot comparison of these and horizontal wells.
A look at how a new bet on oil led to big investor losses
"Convincing investors to put their savings into oil and gas partnerships has handed brokers and bankers fat fees over the years. Now it is handing the investors big losses...Investors in publicly traded drilling partnerships have lost $8 of every $10 invested in just one year."
Key Issues In Multilateral Technology
"In 1953, a unique oil well called simple 66/45 was drilled with turbodrills in Bashkiria field near Bashkortostan, Russia..."
As this article indicates, multi laterals from same well bore are have been around for a while. But the ability to put massive hydraulic fracs on multiple laterals from the same wellbore is not common. High pressure pumping can easily break down plugs and "seals" that are set to try to isolate a previous lateral from one to be frac'd.
I am sure that the technology is moving towards better trying to do this, but to my knowledge it is not there yet to allow it to become a "normal" operation
Not being in the industry, I was not even aware of the existence of multi-laterals, and certainly not of the Russian inventor-engineer. If level 6 multi-laterals are ever realized, imagine being fortunate enough to being a fortunate mineral owner in the vertical wellbore section which would be fed by the 'tree branch roots' of five or six horizontal wells!
http://news.investors.com/ibd-editorials/110615-779636-real-reason-...
"Here's The Real Reason Obama Killed The Keystone XL Pipeline"
I like royalty checks but I like cheap energy bills for the American economy and American families even better!
Then you must love OPEC.
Everyone in the industry is going broke with $45 oil and $150 oil is coming [paraphrased summary]: http://www.thestreet.com/story/13361965/1/dicker-oil-stuck-below-80-no-way-or-global-collapse-is-coming.html?puc=yahoo&cm_ven=YAHOO&ref=yfp
âStress Shadowingâ Effect Key To Optimizing Spacing Of Multistage Fracture Stages
"...While the general trend across the industry has been toward higher stage counts and tighter stage spacing, experience shows production performance does not scale up in simple increments when fracture stages are added in closely spaced completions. In fact, instead of adding hydrocarbon production on a per-stage basis, tighter spacing can add incrementally less hydrocarbon production per stage."