Shale oil production cost pdf

Oil production in these 2 states started the year at record production after revisions, at over 620 thousand bod. The outlook for us production of shale oil congressional budget. Definition sedimentary rock with a high organic content organic matter is known as kerogen kerogen. Jan 09, 2015 oil s steep decline was headline news again friday, as prices of the two primary crude futures contracts were seeing their lowest points in half a decade. This cost includes taxes, pure production costs, administrative costs, and capital expenditure. Aug 15, 2016 this statistic shows the production of shale gas worldwide by selected country in 2015, with projected figures for 2040. What is the cost of production per barrel of us shale. Us shale oil dynamics in a low price environment iv executive summary us unconventional oil has proved to be more resilient than originally anticipated, and shale producers have been able to maintain production at relatively high levels through several months of low oil prices. The latest report bakken shale in the us, 2019 oil and gas shale market analysis and outlook to 2023, states that in 2018, the major counties for. Meanwhile, technological improvement and efficiency have enabled to keep shale production costs decreasing from 2012. The industry is proceeding cautiously, due to the losses incurred during the last major investment into oil shale in the early 1980s, when a subsequent collapse in the. The oil price continued to rise in 1h 2018 yet a q4 2018 renewed supply buildup.

Jan 31, 2020 shale oil extraction methods are more flexible than traditional oil well drilling. Jan 08, 2019 prior to the rise of shale production, oil production in texas peaked in 1972 when yearend production reached 1. Sustained price levels below the cost of production can deter exploration and production and shift. These processes convert the organic matter within the rock into synthetic oil and gas. The bakken shale is an oilwet reservoir and wells that had. How much shale tight oil is produced in the united states. By cost effectively unlocking the hydrocarbons trapped in these tight rock formations through fracking. This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution. Also mote the 90 gb tight oil estimate is a resource estimate, it is not a 2p reserve number, tight oil reserves are only about 24 gb, the usgs estimates are for undiscovered technically recoverable resources utrr, i add reserves and cumulative production at the time of the studies to the utrr estimates to get a trr than apply economic. This statistic shows the production of shale gas worldwide by selected country in 2015, with projected figures for 2040. The resultant shale oil is used as fuel oil or upgraded to meet refinery feedstock specifications by adding hydrogen and removing sulfur and nitrogen impurities shale oil extraction is usually performed. Feb 29, 2016 but the amount of oil produced from a well can vary a great deal over the course of just a few miles, so you will see a wide range of breakeven estimates for a single shale oil play. At the same time, in europe, some countries have decided to ban the production of shale oil and shale gas in their territories or to prohibit the use of its main production technique, namely hydraulic fracturing. The differences between oil shale, shale oil, and shale gas.

Shale oil production relies on the availability of suitable drilling rigs and skilled labour, which is one of the reasons why the us shale oil boom so far has been difficult to replicate in other countries. Shale oil market 2020 by technology, opportunity analysis and. Our analysis suggests that global shale oil production has the potential to. What is the cost of production per barrel of us shale crude. The shale oil extraction revolution has dramatically impacted u. Shale oil comprises more than a third of the onshore production of crude oil in the lower 48 states. Introduction shale oil light tight oil is rapidly emerging as a significant, and relatively low cost, unconventional energy resource. The iea forecasts a 19% increase in global oil production. We believe we will see continued growth in us production led by shale through the middle of the next decade. Substantial volumes of shale gas associated to tight oil exploration hence contributed to the continuous increase of shale gas production, at a minimal production cost as shale gas was produced as a byproduct of tight oil. Shale oil extraction methods are more flexible than traditional oil well drilling. Determine which method of production of shale oil is the most feasible. The emergence of shale is a significant reason, if not the preeminent reason. Apr, 2020 press release shale oil market 2020 by technology, opportunity analysis and industry forecasts 2024 published.

The rapid development and deployment of well pad facilities, accelerated. We see productivity gains as key to commercializing additional oilgas and lowering supply cost. We see productivity gains as key to commercializing additional oil gas and lowering supply cost. Bakken region april 2020 drilling productivity report. Shale oil february 20 7 recent forecasts from the eia and the international energy agency iea suggest a marked rise in both global oil production and real oil prices over the period to 2035, due in particular to rising demand from china, india and other fastgrowing emerging economies 6. Unconventional resources cover different types of oil and gas such as tight oil, heavy oil or shale oil. Shale production, which had been growing by nearly 1. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen. Shale oil is a substitute for conventional crude oil. Production of shale gas worldwide by country 2040 statista. We have seen oil production from key us shale plays grow at a 21% cagr in 20122016. In november 2014 production targets were abandoned in an attempt to regain market share. Energy information administration eia estimates that in 2019, about 2. The initial drilling only accounts for 40% of the total cost.

Shale oil represents a huge additional global fossil fuel resource. By costeffectively unlocking the hydrocarbons trapped in these tight rock formations through fracking. Shale oil market 2020 by technology, opportunity analysis. Prior to the rise of shale production, oil production in texas peaked in 1972 when yearend production reached 1. Shale oil extraction is an industrial process for unconventional oil production. Which companies are the biggest shale players in the u. Growth in the us continues, driven by rising well productivity and. Aug 11, 2017 in march 2016, american shale accounted for half of all u. In march 2016, american shale accounted for half of all u. Press release shale oil market 2020 by technology, opportunity analysis and industry forecasts 2024 published. However, extracting oil from the shale is no simple task. But it was not until the 1970s that significant attempts to apply the technology to gas shale were made, pioneered by doe research and demonstration project cost sharing with industry in such ventures as the eastern gas shales project 197692. The cost of conventional oil varies so much that saudi.

Oils steep decline was headline news again friday, as prices of the two primary crude futures contracts were seeing their lowest points in half a. Us shale is lowestcost oil prospect financial times. World energy outlook, projects that by 2035 several new oil types will replace the loss of nearly onehalf of global conventional oil production. Oil production chart shows the big shale boost for u. In 2015, the united states produced some 37 billion cubic feet per day of. Shale gas resources are becoming an important energy source for meeting rising energy demand over the next few decades.

To forecast the nearterm production rate of shale oil, one must. The dominant question for shale oil production is under what conditions shale oil is economically viable. There is potential for shale oil production to spread globally over the next couple of decades. Development of horizontal drilling and hydraulic fracturing is crucial for economic production of shale gas reservoirs, but it must be performed with caution and as a multidisciplinary approach. Jordans experience in oil shale studies employing different technologies pdf. Shale oil and gas reserves, by state shale oil and gas production, by state shale oil and gas reserves, by type shale oil and gas production, by type map size. Oil shale economics deals with the economic feasibility of oil shale extraction and processing. Deposits of oil shale occur around the world, including major deposits in the united states.

The oil market in the age of shale oil european central bank. But the amount of oil produced from a well can vary a great deal over the course of just a few miles, so you will see a wide range of breakeven estimates for a single shale oil play. Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. Apr8040 40 80 120 apr 3,008 mmcfd production from new wells legacy production change net. We are aggressively expanding our global infrastructure to support new shale gas development outside of north america. Oil shale is an organicrich finegrained sedimentary rock containing kerogen a solid mixture of organic chemical compounds from which liquid hydrocarbons can be produced, called shale oil not to be confused with tight oilcrude oil occurring naturally in shales. Oct 23, 2019 the latest report bakken shale in the us, 2019 oil and gas shale market analysis and outlook to 2023, states that in 2018, the major counties for crude oil and natural gas production in bakken. Shale oil is trapped within strata of thin laminates of rock and does not migrate thru many contaminants like sulfur or mercury,so the end product, once freed, is on par or better then sweet crude. But it was not until the 1970s that significant attempts to apply the technology to gas shale were made, pioneered by doe research and demonstration project costsharing with industry in such ventures as the eastern gas shales project 197692. The shale oil revolution and the global supply curve european. All these resources are much more difficult to extract than conventional resources and require specilized 1 eia, 2016, and enerdata, 2015.