Is Shale Oil Boom Returning ?
Satyesh Bhandari
The United States has the largest known oil shale reserves in the world. The US Energy Information Administration sometimes also uses the phrase "tight oil" to refer to Shale oil. Shale oil is extracted from oil shale, which is a waxy oil precursor called kerogen.
The largest shale oil formations in the US are in the Permian, Western Gulf, and Williston Basins.?The largest shale reserve in the US is the Wolf camp/Bone Spring shale play in the Permian basin.?The second largest is the Bakken/Three Forks in the Williston basin.?The US has an estimated 2.175 trillion barrels of potentially recoverable oil from oil shale reserves.?
The shale revolution ?in last twenty five years has made the U.S. the world’s top oil producer. Shale oil production has increased significantly in recent years. The shale oil industry has proven resilient even in the pandemic and war. Whichever is the government, shale oil to dominate. The high production of shale oil has made the US as Net oil exporter from Net importer.
The US has recently increased its shale oil production due to technological improvements that have reduced drilling costs and improved efficiency.?The per barrel high production cost of shale oil in past compared to low market oil price has compelled the shale producers to cut production level to minimum. Between 2014 and 2019, US oil production increased by 5.3 million barrels per day.?In 2021, the US produced 7.23 million barrels of shale oil each day, which is about 64% of total U.S. crude oil production.
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The current production of crude oil of US is about 13.5 MMbbl/d and out which anout 64 % is coming as shale oil thanks to the new technology adoption. New technology, such as longer wells and improved fracking techniques (Simul-fracking), are helping the U.S. reach record oil production volumes at much lower production cost.?
The combination of horizontal drilling and?hydraulic fracturing?(fracking) that took off in the early 2000s has allowed oil producers to unlock previously inaccessible oil and gas resources that remained trapped in shale source rock and did not migrate and accumulate in typical reservoirs closer to the Earth’s surface.?
This week, OPEC has predicted that the U.S tight oil will be the main driver behind supply growth, rising to 16.7 MMbbl/d in 2029 from current level of about 13.5 MMbbl/d. The head of OPEC’s energy studies has also warned that failure to invest in oil production could lead to a global energy crisis as early as 2035. ExxonMobil has also announced it will double production from its U.S. shale assets over the next five years, leveraging innovative technologies.
Oil/Gas, CBM, Production & Exploration Consultant
3 个月As far as I recall, the GoI had a policy of exploring for shale gas by PSUs only. No private player was allowed to do so. To cut a long story short, Dr Ravi Mishra, as the FPR for this activity may throw more light .
Ex-Principal (Reservoir Engineer - CTE) at PETRONAS Reserves Group, Group Finance , PETRONAS at PETRONAS
3 个月After US, Argentina is performing well in Shale oil production. Close grid horizontal wells are producing with high rates of oil and gas. India has huge shale gas potential like Cambay shale etc, but less potential for basin centric or shale oil potential..
Former Executive Director, ONGC Former Advisor, ONGC. Former Head - Various Units of DGH.
3 个月Crisp & informative.?? In India, efforts were made 2013 onwards to gather data related to Shale Oil & Gas under Shale Oil & Gas Policy-2013. Indian likely prospective shales are not brittle and there are other issues related to Land, Water etc. There is a need to re-study the G&G data along with new data acquired and new technologies .