Shrinking oil-well backlog may push shale operators to drill
Thursday, September 16, 2021
U.S. energy producers may have to resume drilling to keep production from sagging amid a shrinking backlog of drilled but uncompleted oil wells, according to Reuters.
Over the last year, producers have managed to keep spending flat by maintaining output by turning to a reserve of uncompleted wells that have since been put into service. However, they may have to resume drilling as the backlog has shrunk as these wells have been put into service.
Drilling new wells has the potential to add to supply at a time when oil is selling for $70 per barrel, which is profitable for both U.S. shale and OPEC producers.
Learn more: Reuters > As oil-well backlog shrinks, U.S. shale may upset investors and drill more
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
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.