Just add water....

[Windigo]

Investors Anticipate What Could Be the Largest Shale Play in American History

Oil and Gas - Nov 27, 2012

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Expectations are building for America to become the world leader in oil production by 2017 due in part from what some are supposing could be the largest oil play in American history, taking place on Texan soil.

In the heart of Texas's Permian Basin, lies the Cline Shale, an oil shale field running 140 miles long and 70 miles wide. Devon Energy and Chesapeake Energy, two oil companies, are reporting impressive figures based on the short amount of time they have had to explore.  Devon Energy's test wells show the Shale contains 3.6 million barrels of recoverable oil per square mile. With an approximate 9,800 square miles of Cline Shale, this would amount to over 30 billion barrels of recoverable oil, exceeding both the Bakken fields in North Dakota, and the Eagle Ford in Texas by nearly 50 percent.




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Taking into account the projected 200 to 550 depth of the Shale, this would be equivalent to having ten Eagle Ford Shales stacked on top of each other. The oil to dry gas ratio of the Shale is also garnering attention, with the Shale containing 85 percent oil and liquid rich gas. When you combine that with the low operating costs it takes to produce the oil in the Basin, about 50 percent less than the Bakken, it is shaping up to be one of the greatest oil & gas booms America has ever seen.

There are two primary deficiencies that the Cline Shale region will need to overcome to be able to make history: lack of housing due to exponential population growth to small town infrastructures, and lack of global distribution for the large amounts of liquid gas being produced. If the deficiencies are adequately addressed, the boom stands a better chance of maintaining momentum.

LubbockInvest, a real estate investing firm, is addressing the housing lack through Stone Bridge Estates, a 50 acre 265 lot manufactured home development in the heart of the Permian Basin, aimed at providing high-end, affordable housing for the employees brought to the area due to the boom. This type of housing is in high demand since many of the individuals brought to the area lack creditworthiness, preventing them from obtaining traditional housing. According to Midland City Manager, Courtney Sharp, "Oil and gas company leaders also say that cumulatively, they still could use as many as 10,000 more employees in the coming years." As it stands, housing will continue to be a deficit that could hinder the boom, but is being addressed at a satisfactory pace.

Teekay LNG Partners, a Liquid Natural Gas Carrier, is addressing the deficiency that such large liquid gas depositories will cause. Although gas is extremely inexpensive in the United States, it remains pricey in nearly every other country in the world. Teekay has been ramping up its ability to export liquid natural gas around the world by adding six additional vessels to its inventory in October of 2011. With the presence of an international market, the profit produced from the Cline Shale will increase quite dramatically as most of the gas extracted is already liquid-rich gas.

Although it is too early to call this the largest play in American history, it is clear that intentional companies are anticipating that this is precisely what it could be.

Source : LubbockInvest

[LongBlade]

I've been reading/seeing these reports for several months now.

A few weeks back someone did a montage of presidents speaking about American energy independence.

It went back to Carter, and every one said we were within ten or twenty years of achieving it.

Eventually one of them will probably be right. We shall see.

[Longdan]

Some of them can't be right since the time limit has passed.
It would be nice to end petroleum dependence since it is finite after all
but some people are not interested in that.  It will be nice if they can
get that stuff out without making too big of a mess.  I imagine it is
possible but there will be unforeseen costs because there ALWAYS are.
They have been kicking around this oil shale since I was in school....
you know when The Beatles were still making albums.
BTW Paul McCartney concert here tonite.  Anybody give a flying poop?

[Windigo]

I've been reading/seeing these reports for several months now.

A few weeks back someone did a montage of presidents speaking about American energy independence.

It went back to Carter, and every one said we were within ten or twenty years of achieving it.

Eventually one of them will probably be right. We shall see.

The 'tight oil' plays that are coming on line in the States are huge; North Dakota, Texas, and California all have massive reserves. And this oil is light crude... good stuff. The news letter just confirms another shale field will come into play.

Tight oil needed new technology to get it out.... that technology is here and now. Your we shall see is happening now.... Cheaper prices at the pumps? No, but it means most of your oil needs will now come from home and this strategicly means you don't have to fawn all over the middle east to keep the home furnaces lit

[LongBlade]

Excellent news. Thanks.

[Windigo]

Excellent news. Thanks.

If it plays out... get this, the US can be a major oil exporter.... like get outta town/shut the front door eh???

[Longdan]

H2O is gonna be a leetle problem

[Windigo]

H2O is gonna be a leetle problem

hence the topic title

[Mr. Bigglesworth]

You can pay your bills!

[Sparhawk]

Now if we could just move away from the inefficiencies of internal combustion we could put all this newly aquirable fuel to much better and longer use.

[Windigo]

Now if we could just move away from the inefficiencies of internal combustion we could put all this newly aquirable fuel to much better and longer use.

I am still optimistic about a fuelcell home power unit that will last for more than 5-7 years