[Moto]

http://energy.geothunder.com/2011/10/16/continuous-resources-vs-traditional-oil-fields/

Please provide comments on what additional information you would like to see provided in this series of posts.
As always feel free to criticize.

Thank you for your feedback.

[Pops]

Actually, Moto, we usually delete spam and a post with nothing but a link is spam.

If you are interested in contributing here then please do but if you simply want to promote your websites you'll need to go elsewhere.

[basil_hayden]

Plus, this guy's blog blows yours away!

http://milliondollarway.blogspot.com/p/about-this-site.html

[Moto]

Sorry I didn't get back earlier.

$this->bbcode_second_pass_quote('basil_hayden', 'P')lus, this guy's blog blows yours away!

[Pops]

Just post up the gist of your article with a link like any other article and everyone is happy.

[copious.abundance]

I actually thought the article was pretty good. Points like the one below are really good because you don't usually see them mentioned on places like this or TOD:
$this->bbcode_second_pass_quote('', 'I')n fact continuous resources are often the source rock for many traditional fields. If not for continuous resources traditional traps would not have any hydrocarbons in them. A few percent of the oil and gas contained in continuous resource leaked out over long periods of time (millions of years) and accumulated in traps.

[Moto]

Thank You OilFinder that is exactly what I wanted . I will probably put part two up tomorrow or Sunday which covers some of you points, but I will try to get all of your comments incorporated.

[kublikhan]

A few questions:
1. How low can the price of oil fall without seeing production shut-in at Bakken? I read in an article that growth will continue as long as oil stays above $60. And oil wells start getting shut in when oil falls below $50. But that article was from last year, not sure if any new developments have changed since then. Also I am not sure if that price is the Brent price or the heavily discounted Bakken price.

2. What pipeline projects are currently in the works to relieve the transportation bottleneck at Bakken? I read many of these pipeline projects are far from a sure thing and their future looks ambiguous. Instead, I read about an expansion in rail transportation facilities, hardly an ideal method of transporting oil.

$this->bbcode_second_pass_quote('kublikhan', 'A') few questions:
1. How low can the price of oil fall without seeing production shut-in at Bakken? I read in an article that growth will continue as long as oil stays above $60. And oil wells start getting shut in when oil falls below $50. But that article was from last year, not sure if any new developments have changed since then. Also I am not sure if that price is the Brent price or the heavily discounted Bakken price.

[Moto]

Current break even price is $55 (see slide 4), but that keeps dropping. Their are problems getting the oil out, and there is currently a significant shortage of proppant world wide (solutions are on the horizon). The gap is closing on a lot of the input costs. Infrastructure problems in the Williston basin do add a measurable amount to Bakken development. The drilling companies are often directly or indirectly billed for infrastructure development, but at some point infrastructure will catch the demand caused by drilling (cities and counties are not willing to put much money in because they got burned in the 1980s). I have seen some projections of infrastructure catching up in about 2015, but I don't remember the source. Regardless the input costs should drop as development continues, and output revenue should rise as supply chains become better established. (both into and out of the state)

Sorry this is kind of a tangent topic.

[babystrangeloop]

You should use a comma here:

$this->bbcode_second_pass_quote('', 'I')f not for continuous resources traditional traps would not have any hydrocarbons in them.

[Moto]

Thanks babystrangeloop. I will probably revise both posts some based on OilFinder's comments. I don't know if I will have time to get to the third post this week, but I will try. If I miss it there may not be time to get it done for the next month or so...

[Serial_Worrier]

Think about the environmental wreckage of shale oil production. It's immoral to future generations as well as the tar sands that has destroyed large swathes of arboreal Canadian forest.

[Bruce_S]

$this->bbcode_second_pass_quote('Serial_Worrier', 'T')hink about the environmental wreckage of shale oil production. It's immoral to future generations as well as the tar sands that has destroyed large swathes of arboreal Canadian forest.

[copious.abundance]

$this->bbcode_second_pass_quote('Serial_Worrier', 'T')hink about the environmental wreckage of shale oil production. It's immoral to future generations as well as the tar sands that has destroyed large swathes of arboreal Canadian forest.

[Bruce_S]

$this->bbcode_second_pass_quote('OilFinder2', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'T')hink about the environmental wreckage of shale oil production. It's immoral to future generations as well as the tar sands that has destroyed large swathes of arboreal Canadian forest.

[Moto]

Based on the comment I think it was a fitting remark.

While Shell is not my favorite company they are spending billions trying to clean up the tar sands. I'm not going to get into a debate on that right now, but I do think we are going to see them figure out ways to make it work both efficiently and cleanly.

It is estimated that about 5 million barrels a day will be coming from the sands before 2035 so.... They better figure it out.

and... before you freak out about that you should realize that more than half will be in situ production, and like everything else they will get better and cleaner. Canada is a bit more proactive regulation wise than the US so they will probably clean things up a little faster than we would.

If we want to talk about shale... Several drillers are switching to something called eco-pad where they basically drill a bunch of oil wells on the same pad. The benefits are less moving gear, fewer trucks, a smaller footprint, and easier infrastructure development. I have heard of up to 8 wells on one pad, but 4 is becoming common. (multiple horizontal horizons)