As you say , Very Surprising that oil production is still rising in USA after shale capex collapse - what are the actual physical / engineering reasons for this continued rise ? Thanks
As you say , Very Surprising that oil production is still rising in USA after shale capex collapse - what are the actual physical / engineering reasons for this continued rise ? Thanks
I originally thought the limit to shale production was capital. Or to put in crude terms, if you don't care about whether you make money or not, you could drill in New York and find oil. However, the data is pointing to shale really being a technological breakthrough that does drop the cost of oil exploration, and makes previous uneconomic areas viable. The only limit seems to be weakness in the price of energy caused by excessive drilling, but that seems to be under control at the moment.
As you say , Very Surprising that oil production is still rising in USA after shale capex collapse - what are the actual physical / engineering reasons for this continued rise ? Thanks
I originally thought the limit to shale production was capital. Or to put in crude terms, if you don't care about whether you make money or not, you could drill in New York and find oil. However, the data is pointing to shale really being a technological breakthrough that does drop the cost of oil exploration, and makes previous uneconomic areas viable. The only limit seems to be weakness in the price of energy caused by excessive drilling, but that seems to be under control at the moment.