shale oil
I am currenttly reading Oil 101 and it says that shale oil extraction and process is economically non viable. Has so much changed in the 5 years since this was written? Why is so interested in shale oil all of a sudden? I read that people have been losing their fortunes trying to make this industry work. What is the truth?
Oil and natural gas production has historically been from limestones and sandstones, with shale formations acting as the source rock and being ignored as a primary reservoir due to its low permeability and porosity. Horizontal drilling and multistage hydraulic fracturing has now enabled commercial production from the typically overlooked shale formations. Industry was its own worst enemy as shale formations with an abundance of natural gas such as the Barnett, Haynesville, Marcellus, etc experienced a rapid growth in production, creating an oversupply which drove natural gas prices down from ~$13/mcf to ~$2/mcf.
Thus more recently, focus has shifted to applying these new techniques (horizontal drilling & multistage fracking) to oil production as drilling for gas at ~2/mcf is uneconomical.
Oil 101 is a great book but quite outdated. The part on chemistry, transportation, risk are still relevant but when it comes to the future of oil, fracking and shale oil it's not relevant anymore.
No one really talks about "oil shale" anymore, so I wouldn't worry too much about it.
Thanks for clearing that up. Keep reading and if you don't mind send me a pm with books you have read and think are worthwhile.
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