As Fracking Enters A Bear Market, A Question Emerges: Is The Shale Boom Built On A Sea Of Lies? | Zero Hedge
'KEY FINDINGS, TIGHT OIL (SHALE OIL)
More than 80 percent of tight oil production is from two unique plays: the Bakken and the Eagle Ford.
Well decline rates are steep – between 81 and 90 percent in the first 24 months.
Overall field decline rates are such that 40 percent of production must be replaced annually to maintain production.
Together the Bakken and Eagle Ford plays may yield a little over 5 billion barrels – less than 10 months of U.S. consumption.'
'Here are there are five main things to know about the shale plays.
They deplete very quickly. The typical shale, or tight rock, well production declines by 80% to 90% within three years.
They are expensive. All oil and gas coming form them is several times more expensive than what we got from conventional oil plays.
They are environmentally damaging because the fracking fluid is highly toxic and much of it escapes during the blowback process and sometimes water wells are contaminated.
Because each well has low flow and depletes quickly, massive numbers of wells must be drilled creating significant infrastructure damage to roads and bridges. Currently no state or municipal authorities are capturing anything close to the total cost of the infrastructure damage from the shale operators which means taxpayers are gong to be left paying those bills.
Not all shale plays are created equal – some are vastly superior to others. And even within a given play there are sweet spots and dry holes which can only be determined by punching a well in and seeing what comes out. Some call this the ‘mapping by braille’ approach.'
Shale Oil: Expensive, Over-Hyped, & Short-Lived | Zero Hedge
'Jim Rogers: I read the same things you do. But what I don’t read much about is the fact that the number of drilling rigs for shale gas has gone down 75 percent in the last 18 months or so. Because it turns out that these wells are very short-lived. They're great for the first 30 days. But by year three or four, they're very expensive to maintain.
Two things come to mind. One is that I presume human ingenuity will solve that problem somehow. But if it’s a geological problem and it cannot be solved, then the gas boom is not quite what we all thought it might be. And I’m told the same applies to the shale oil wells.'
Jim Rogers: Shale Gas Wells are very Expensive to Maintain | JIM ROGERS BLOG
The Coming Bust of the U.S. Shale Oil & Gas Ponzi
EIA Cuts Monterey Shale Estimates on Extraction Challenges - Bloomberg
I am not sure what sources you require?
Obviously the oil industry and the government won't frown on shale oil. I doubt the mainstream media or Wall St. will either. And the public LOVE the thought of oil self sufficiency.
I am not saying it's a bust. But it seems clear to me that the U.S. shale oil boom is overhyped...possibly greatly.