Has the US shale oil boom peaked?
Monday, October 7, 2019
Has the technology that drove the U.S. shale boom finally peaked?
One thing is clear, oil production is leveling off as innovation plateaus, according to a recent article by The Wall Street Journal.
U.S. oil production increased by less than 1% during the first six months of 2019, according to the Energy Department. Over the same period in 2018, oil production saw a 7% increase.
The reduced growth is being credited to operational issues, including underproducing wells that are drilled too close to one another and sweet spots running dry sooner than expected. The rising drilling challenges point to the possibility that the technology and engineering advances that have made it possible for shale companies to unlock record amounts of oil and gas from rock formations have started leveling off.
This year, U.S. oil production is on track to hit an average of 12.2 million barrels a day, up from 11 million barrels a day last year. However, because output grew so quickly last year — from an average of 10 million barrels a day in January to 12 million barrels a day in December — 2019 is being labeled a year of limited growth.
Learn more: The Wall Street Journal > U.S. Shale Boom Slows Down Amid Worries Over Oil Supply
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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.