In the past, shale companies figured out a way to cut costs while expanding production:
Fracking fuels half of U.
It recently hit a new milestone in the U. Fracking now accounts for more than half of all U. Hydraulic fracturing technology, more commonly known as "fracking," paved the way for drilling into America's enormous shale deposits.
It has fueled a dramatic boom in U. Back inthere were just 23, fracking wells pumping aboutbarrels of oil a day. Now there arefracking wells, churning out 4. Fracking "has allowed the United States to increase its oil production faster than at any time in its history," the EIA said in recent report.
That surge in American crude is one of the main reasons why there is a global glut in oil that keeps getting worse. It's changed the whole pricing paradigm," said Tamar Essner, director of Nasdaq's energy team.
Epic oil glut gets worse So how does fracking work? Fracking involves shooting a mixture of mostly water and sand under high pressure against a rock formation until it fractures.
The sand fills the fracture, forcing crude oil out of the rock formation. Fracking has been criticized for its potential environmental consequences, including water contamination and earthquakes. These concerns were summed up in a HBO documentary called "Gasland" that focused on communities impacted by natural gas fracking.
Shale oil is not a new discovery. It's actually been around for 60 years. What's new is that the technology has vastly improved in recent years. Innovation has made previously-expensive fracking much more efficient.
High oil prices before and after the Great Recession lured tons of investment dollars into this space, fueling a technological revolution. Investors were also motivated by extremely low interest rates to borrow cheap and invest in this technology. The fracking revolution first hit the natural gas space, fueling a wave of production in giant shale fields such as the Barnett and Marcellus spread across Texas, New York, Pennsylvania and Ohio.
But a supply glut quickly formed in natural gas, causing prices to crater.
Saudis to take control of largest U. This turned out to be a game changer because it brought about a ton of new supply that was cheaper to drill than deepwater projects or even the Canadian oil sands. The other game-changing characteristic of fracking shale oil is how fast the entire process is.
While deepwater production in places like the Gulf of Mexico require tons of lead time, shale wells can be drilled and start pumping oil relatively quickly. Lately, shale drillers have dialed down pumping and U. However, everyone expects some of these oil fields to be easily switched back on the minute oil prices hit levels where they can make money.At least 19 companies hoping to profit from fracking the Rogersville Shale have leased land in Kentucky and West Virginia.
Cabot Oil and Gas alone has leased close to a million acres in southwestern WV. Speculation has begun in Eastern Kentucky about the Rogersville Shale: a potentially large reserve of oil and natural gas trapped two miles underground. The gas drilling companies are licking their chops over an area known as the Chattanooga Shale which spans across Alabama, Tennessee, Northwest Georgia and Kentucky.
As of February , there are fracking wells in Anderson, Campbell, Fentress, Morgan, Overton, Pickett, . Shale gas From Wikipedia, the free encyclopedia For gas generated by oil shale pyrolysis, see Oil shale gas.
48 Shale basins in 38 countries, as per the EIA Derrick and platform of drilling gas wells in Marcellus Shale (Pennsylvania, USA). Information on exploration, hydraulic fracturing and approach to the development of shale gas in the UK.
Guides Policy information, guidance, infographics and explanations on shale gas and. Apr 26, · Safe, cost-effective refinements in hydraulic fracturing (also known as fracking), horizontal drilling and other innovations now allow for the production of oil and natural gas from tight shale.