The US experience with shale oil and shale gas offers a number of lessons to the rest of the world.
Lesson #1 seems to be that the best ‘candidate shales' are those that have acted as the source rock for a significant, even major, conventional petroleum province. In fact it is very rare that this is not the case.
If we look in our ‘neighborhood' – Western Europe, Russia and the FSU, and North Africa – the obvious candidates therefore appear to be the Kimmeridge Clay, the Bazenhov, the Domanik, and the ‘hot shale' of North Africa.
Lesson #2 is that the economics work best (or at current oil prices, only work) when you are in the “sweet spot”. The “sweet spots” of plays such as the Barnet, the Bakken, the Permian Basin are now clear, after much effort.
Lesson #3 is that once you are in a “sweet spot”, technology can drive costs/barrel or costs/mcf way, way down.
An important question therefore is – can “sweet spots” be identified in advance, before major effort is put in, big $s are spent?
It seems to me that the jury is still out on that question! No doubt as US colleagues will figure their answer out as they move into other basins.
But for us in this neighborhood, what does this mean for a “shale gale” here, or hereabouts?
These are the Lessons – and the questions - we will address in our upcoming Forum; and we are looking for insightful presentations!
Please contact me if you/your company would like to make a presentation.
And Richard Mcintyre if you are interested in the sponsorship/exhibiting opportunities we offer.
David Bamford (David@findingpetroleum.com)
Date of Event
31 Jan 2017UnconventionalsLondonGeolSocFinding PetroleumEvent
London England GB 23 Feb 2017
London England GB 12 Dec 2016