Will U.S. Shale Ever Return To Its Glory Days?
The shale “boom” is about thirteen years old, if you date it from 2010 and there are clear signs the meteoric growth of past years are behind us. Our expectations are for shale production to maintain an upward trend for most of this year, but with an arc that flattens as 2023 waxes on, and then begins to bend down. Perhaps as soon as the end of this year. This opinion flies in the face of generally accepted industry and governmental forecasts that show shale production exceeding 10 mm BOEPD at the end of 2024.
Problems on the horizon with shale output
One of the problems with shale production, is the best locations in the various shale basins are well past their prime and shale output could be in the early stages of a death by a thousand cuts. (A death, I remind you again is decades hence, but hanging out there none the less.) This declaration runs in stark contrast to other data taken from the EIA Drilling Productivity Report-DPR, showing shale production is on the increase. How is this possible?
A closer look at the table below, taken from the DPR you will see that production is increasing significantly only in one basin-the Bakken, rising incrementally in another-the Permian, and barely staying even in others. What's up? $Camber Energy(CEI.US$ $Imperial Petroleum(IMPP.US$ $Chevron(CVX.US$ $Exxon Mobil(XOM.US$
One of the problems with shale production, is the best locations in the various shale basins are well past their prime and shale output could be in the early stages of a death by a thousand cuts. (A death, I remind you again is decades hence, but hanging out there none the less.) This declaration runs in stark contrast to other data taken from the EIA Drilling Productivity Report-DPR, showing shale production is on the increase. How is this possible?
A closer look at the table below, taken from the DPR you will see that production is increasing significantly only in one basin-the Bakken, rising incrementally in another-the Permian, and barely staying even in others. What's up? $Camber Energy(CEI.US$ $Imperial Petroleum(IMPP.US$ $Chevron(CVX.US$ $Exxon Mobil(XOM.US$
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