US shale growth may peak sooner than anticipated
Wednesday, October 11, 2017
Not long ago, shale drillers defied expectation and upended traditional oil markets by increasing production despite facing lower prices. However, the industry looks like it’s finally slowing down, according to Fox Business.
Although output still remains robust and could surpass the 1970 record annual average of 9.6 million barrels a day, companies are starting to tap the brakes on drilling as they confront technological, operational and financial obstacles. While the cost of labor and services keeps rising in the most popular oil fields, the innovation that made it possible for shale drillers to maintain production during periods of low prices appears to be slowing, according to experts.
Large oil companies are facing backlash from investors, worried about focusing on growth over profit. As a result, industry leaders believe U.S. shale growth may peak sooner than forecasters have predicted.
Learn more: Fox Business > U.S. Shale Juggernaut Shows Signs of Fatigue
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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.