Chesapeake could return to 68 percent of its wells to refrack
Tuesday, June 2, 2015
Out of Chesapeake Energy’s 6,750 wells, 4,600 of them have the potential to be refracked. Investopedia reports that since the 4,600 wells, or 68 percent of all of its wells, were drilled before 2012, they weren’t drilled using the latest fracking technology, so they have the potential to be refracked.
In the past few years, fracking technology has improved, so well performance and production have improved. Refracking allows oil and gas companies to reap the benefits of returning to previously-fracked wells to have another turn at production.
Refracking has the potential to improve company revenue, so investors should keep an eye on trends in the months and years to come.
Via: Investopedia > Chesapeake’s Enormous Refracking Potential
More about refracking:
- Drilling companies focus on re-fracking to save money Feb. 14, 2015
- The shale industry’s newest technique: refracking Aug. 24, 2014
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.