Wednesday, July 20, 2016
Innovations In The Oil Industry Continue To Impact Supply And Prices
Bloomberg: Shale Revolution Extended to Old Wells Seen Unleashing More Oil
* IHS Markit Energy assessed 46,000 horizontal wells in U.S.
* Study shows big potential for reviving conventional plays
U.S. oil explorers are yet to fully reap all the rewards of horizontal drilling techniques that helped trigger the shale boom, research firm IHS Markit Energy said.
From Texas to North Dakota, the method still stands to boost production from old, conventional wells where low permeability has restricted extraction to a fraction of their potential, an IHS Markit study showed. Of the 46,000 horizontal wells surveyed, only 10 percent were in so-called tight conventional plays being drilled anew for more crude, signaling there’s considerable untapped potential across the country, IHS Markit said.
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WNU Editor: more bad news for OPEC. To say that this is fantastic news in an understatement. Innovations in energy extraction continue to put pressure on oil prices .... which in turn further limit the power and influence of groups like OPEC. This may cause problems for oil producing countries like Venezuela .... but for all of us .... a badly needed break on our pocketbooks.