Impact of US shale boom

The boom in shale oil production has boosted US oil production by 1.3m barrels a day in two years. Javier Blas, commodities editor, discusses with commodities correspondent Jack Farchy the impact this has on the price of oil and the US.

[antred]

Exactly right. Even the EIA thinks that the shale oil boom will be all but over by mid 2020s. I've heard some people say that the average tight oil well has such ridiculous decline rates (>40%/year) that it reaches stripper status after only 7 years of production, at which point it is probably plugged and abandoned for economical reasons. This means constant frantic drilling is required to keep production growing (and eventually, even just from falling).

[amoringis]

The green river shale in Colorado, Utah and Wyoming is 3 trillion barrels 10x than of Saudi Arabia. The US will no longer need oil anywhere in the world including Canada. This is only one place in the US we still have Bakken, Marcellus, Monterrey etc. shale . The US will not only energy independent in 5 years but it will be exporting oil soon. Why do think that pipeline from Canada going to the US did not get approved in the US Congress? Because the US don"t need it.

[amoringis]

I guess you already heard about hydraulic fracturing (fracking) and horizontal drilling. The 2005 Congress under Bush approved this procedure extracting oil from shale without EPA regulation. Yes it is dirty but is not dirtier than processing Canadian tar sands. It cost $40-$60 to get about a barrel of oil from shale. The cost of a barrel of oil in the world market (OPEC) is about $100. You see the profit being made in extracting oil from the Bakken field in the Dakotas?

[chairde]

The hell with the Middle East because we are very capable of building new and better refineries here in the USA.

[ClarksonsinUSA]

There is a massive Ashley furniture plant going up in Advance NC, 1300 employees when it reaches 100% capacity and 100 dock doors....The trend will hopefully continue...

[antred]

From a capitalist point of view, exporting U.S. tight oil makes sense (who wouldn't sell to the highest bidder), but from an energy-conservation perspective it seems almost criminal to ship scarce oil around the world (burning heaps of energy in the process) when the U.S. is a net importer of oil anyway.

[amoringis]

We are paying that now so what is the problem? For as long as US citizens can afford it we will pay. The problem comes when some unfriendly country try to dictate our foreign policy and try to tell us how to live our lives. The US will not allow itself to be pushed around .

[antred]

Nope. Bakken is tight oil - that's actual oil. Green River is kerogen, not oil. No one has managed to develop an economically viable method of extracting kerogen, turning it into oil and selling it for a profit. At the moment, oil shale is utterly useless.

[sdushdiu]

The missed joke here is that natural gas is an even cleaner, more abundant resource!
Its past time for the US to invest in a national infrastructure to distribute these resources and to refine its our resources, combined with the oil from the Canadian Alberta oil sands. Also, its time to transition factories, energy generation and autos to varieties of clean burning natural gas

[ClarksonsinUSA]

GTL plants going up will be a game changer...

[antred]

You need to educate yourself on the difference between oil shale (kerogen) and actual crude oil. Then you will understand that oil shale is completely irrelevant.

[amoringis]

The Green river and Monterrey shale are a lot bigger than the Bakken field. They are going to developed soon . THe US will not only be energy independent in 5 years, it will be exporting oil to friendly countries. BTW technology will catch up oil as energy source. Fusion will take over in about 20-30 years. The Tocomac reactor in cooperation with several industrialized countries is now under construction in France. It is clean and it will supply the energy of the world needs.

[MarkZiegler]

1 or 2 million barrels a day is nothing. The world uses 85 million barrels a day. That comes to a billion barrels in 13 days. I hear investors are losing on shale drilling.

[ClarksonsinUSA]

A Gildan yarn plant, Pro Refrigeration, and Ashlee for a combined impact of around 2000 employees in little Davie county NC....The shale boom has made it to main street.... :) Cheap electricity drives manufacturing.. Look it up..

[ClarksonsinUSA]

You should go green lead by example, walk the walk so to speak...Cost matters, shale gas has already lowered co2 more than was thought possible in the USA...As Germany goes back to coal fired plants, after dumping nuclear plants...It is, what it is.
.

[jerrymalinab]

Yes, buy now... Kick moff and play boom bbcode... Jmm... with respect....

[amoringis]

Get your facts straight!

[antred]

By the way, I can't send a response to your PM because it says

"User ClarksonsinUSA has enabled contact lock. You will not be able to send messages to them unless they add you as a contact."

If you're at all interested in hearing my response to your post, you may want to remove contact lock or add me as a contact.

[antred]

Did I not concede that from a capitalist point of view, exporting oil makes sense? In fact, wasn't that the opening sentence of my post?

[ClarksonsinUSA]

From that point of view we should not export wheat, because it might make the price of bread go the simple truth is the bigger the market the more it motivates the producer to know you probably dont get this, because you sound like a low information see what made America great, was mass producing see the more money that any one producing can get for the a product or service, the more they want to produce...