Drilling companies focus on re-fracking to save money
Saturday, February 14, 2015
One way that drilling companies are attempting to survive the glut in oil prices is by re-fracking wells, according to Bloomberg. It costs an average of $8 million to frack a new well, while re-fracking an existing well costs an average of $2 million, and there are about 50,000 wells in the United States that could be re-fracked.
In the past, re-fracking’s success has been inconsistent. Since production has slowed down recently, companies have more time to experiment with re-fracking.
Fracking is the process by which water, sand and chemicals are blasted down wells to crack rocks, allowing oil and natural gas to escape. Although fewer new wells are drilled as companies experiment with re-fracking, environmentalists are disappointed that natural resources will still be used and environmental impact will still be a concern, just as it is when new wells are drilled.
Related: The shale industry’s newest technique: refracking Aug. 24, 2014
Via: Bloomberg > Drillers Take Second Crack at Fracking Old Wells to Cut Cost
One Comment
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.
Horizontal Well Testing has an electric straddle inflate system that can be operated in horizontal well bores. This might just be the right selective system to find those prime stages to stimulate and re-test after to evaluate the re-frack.