US Shale "Unsustainable"

[Economy 52,861]

http://peakoilbarrel.com/bakken-sweet-spots-petering/

 

Despite the Shale boom hype, it is believed by many experts that shale oil production even with higher prices cannot be sustained

 

Shale runs on short cycles. It takes only months to start drilling a new project but only a few years to depleate each well so constant reinvestment into new wells is required

 

Although a good 40 Billion Barrels of "recoverable reserves" remain intact, companies have targeted the "sweet spots" first. These are the wells that are most productive and therefore have a lower cost and produce more

 

As sweet spots begin to depleat, companies will be forced to drill a greater quantity of less productive wells just to maintain production flat. As such production costs will also rise. Unless oil prices skyrocket or extraction technology goes through a revolution, it is unlikely production will keep booming

[Luc 4,776]

Perhaps the US could use oil as something to influence geopolitics? Like, they could suddenly raise oil production when they want to sanction Russia, Iran or Saudi Arabia. Or would that require too much state intervention?  

[Economy 52,861]

1 hour ago, Luc said:

Perhaps the US could use oil as something to influence geopolitics? Like, they could suddenly raise oil production when they want to sanction Russia, Iran or Saudi Arabia. Or would that require too much state intervention?  

Well, the US has private companies produce oil not State Owned companies so the US cant really control production easily

 

but thats ok. More strength to Canadian oil long term 

 

did u know we discovered another 500 billion barrels of oil in carbonates? Unclear at this time how much will be recoverable tho

 

on an unrelated note. Just read about this new wind turbine that can generate electricity with wind at only 2km an hour and it produces more power than traditional wind mills!!!!!