US Fracking Wells Are Producing Far Less Than Forecast

On average, these companies are set to pump about 10% less oil and gas than was forecast, an amount which equates to about 1 billion barrels of oil and gas over 30 years, which would be priced at about $30 billion at current market prices. In some regions, companies are reportedly off track by more than 50%.

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According to a new report by the Wall Street Journal, thousands of shale oil wells that have been drilled over the last five years are pumping less than what was forecast to investors. The new discovery has raised questions about the strength behind the United States’ newfound supply of shale oil.

The WSJ compares well productivity estimates that were disclosed to investors versus public data of how these wells have performed to date; after analyzing 16,000 wells operated by 29 producers in places like North Dakota and the Permian basin, the Journal  found that about 66% of projections made by companies between 2014 and 2017 are reportedly “overly optimistic”.

In total, these companies are set to pump about 10% less oil and gas than was forecast, an amount which equates to about 1 billion barrels of oil and gas over 30 years, which would be priced at about $30…

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3 thoughts on “US Fracking Wells Are Producing Far Less Than Forecast

    • Not entirely, anthracite can be burned cleanly and mined with less destruction to the environment and loss of life. Those good states will not become prosperous on the order of Saudi Arabia or Iran, and don’t expect a powerful anthracitedollar, but life would be better.

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