US shale production is expected to continue declining in 2021
Friday, November 20, 2020
U.S. shale output is expected to continue declining into next year if crude prices remain in the $40 to $45 range, according to Rystad, a Norwegian energy research firm.
Oil and gas companies have been forced to minimize exploration and production costs amid low crude prices. As a result, the average shale oil production is set to fall by 3.1 percent in 2020 to 7.5 million barrels per day, which is down from 7.7 million barrels per day in 2019, according to Rystad.
Furthermore, Rystad forecasts that shale output will decline further by another 2 percent to 3 percent in 2021 if crude prices remain diminished.
Learn more: MRT > U.S. shale production to fall another 3 percent in 2021
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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.