Forum Discussion
LindsayRichards
Sep 27, 2012Explorer
The ability to produce shale oil has drastically changed things in the oil business. There is a lots more of it out there and the production costs are lower. You drill into the shale layer and then go horizontal with fissures every several hundred feet for several miles. It is like drilling a new well every several hundred feet except you start out at the sweet spot. You can drill 8 to 10 wells from a half acre foot print. This drastically reduces the drilling price and drastically increases the supply. That spells lower prices. I am excited. This stuff about all the easy oil already being drilled is the old way. Shale oil at 8,000 feet is so much cheaper that going down 35,000 feet below the Gulf of Mexico. This is going to cut prices drastically.
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