Decline of gas and oil wells in the Bakken

By Anonymous Questions, February 21, 2014

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Reading comments from The Outsider Club e-mails regarding the substantial decline of gas and oil wells in the Bakken and other shale plays around the country. The comment was made that the wells are declining at a rate of 40% or more in the first year, making drilling costs prohibitive so that many of the companies are losing money on each well drilled, and the claimed energy independence statements are false. Anyone have any input?

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5 Comments on " Decline of gas and oil wells in the Bakken"

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arch1
Irregular
4340
February 22, 2014 3:53 am
Yes that is the nature of of ‘thin’ strata such as bakken. Think of a cake with a layer of frosting between cake layers. If you drill 1 vertical hole you extract liquid portion for a very short distance from hole. In Bakken you drill down, then horizontal in shale layer so more is adjacent to hole. More than one horizontal hole may be drilled from original well at less cost than 1st vertical well, like spokes in a wheel on its side so, as initial in rush of fluid lessens, out put is extended. Length of horizontal hole can… Read more »
Denis Harper
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Denis Harper
February 22, 2014 9:52 am

That’s fairly clear Frank but I’d like to know how far out from the fracking pipe does the effect extend. Yards? Hundreds of yards? Miles? Most articles on fracking seem to avoid this detail and if the oilcos. start fracking at the most accessible areas it must surely get harder and more expensive as time goes on. I think this is the basis for the considerable amount of scepticism in the general public about the life of these assets as opposed to a conventional reservoir.

arch1
Irregular
4340
February 22, 2014 8:47 pm

Denis; Yes ,yes,yes Actually unknown,it is variable. Unlike common concept of pools of oil tapped by conventional wells oil is trapped in porous strata,under varying degrees of pressure. Fracking applies pressure to ‘open’ the rock using fluid {water] & small particles [sand etc.] to keep open. Some is being done with carbonated water[CO2+H20] soda water to sequester supposed greenhouse gas & collect “green” subsidy. Much propaganda from all sides,choose belief of your choice.

John Strader
Guest
0
February 24, 2014 9:38 am
I am a CEO of a small oil company in Kansas and have been investing in Bakken oil Stocks since 2006. While I don’t have all the answers I do understand a lot about the Bakken and Three Forks oil formations. The first year decline in oil production is closer to 75% from the initial daily production which is normal for most shale and some non shale oil wells in the US. However, many non shale formations have closer to 50% declines. Many of the companies are using micro censers to determine how far apart the well should be drilled… Read more »
bludolphint
Irregular
25
February 25, 2014 1:35 pm
I agree with your view on the shale, (etc.) plays. I remember a former CEO about 5 years ago when this boom was starting to get legs, but his were gas plays mostly. But anyway the point was how quickly these wells depleted. Some wells were uneconomical after just 2 years. I know that is just one opinion, but I have seen many reports since then, both tight oil & gas that are similar to that. I just wonder if some want “oil independence” so much that they talk about trillions of units under the U.S., but not much said… Read more »
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