European shale projects can learn from the U.S. operators | Russell T. Rudy Energy LLC
According to a recent article in “Rigzone”, research firm Wood Mackenzie feels that Europe will learn from our experience with shale development. Wood Mackenzie divides unconventional oil and gas development in the U. S. into three phases.
Phase I was typified by the development of a large number of highly productive shale gas assets with impressive production growth. In my opinion the Barnett shale in North Texas and the Marcellus in Pennsylvania are good examples.
Phase II was characterized by a smaller group of high margin oil shale plays. I think the Bakken shale in North Dakota and the Eagle Ford in South Texas are typical of this stage.
Phase III is just beginning according to Wood Mackenzie. In this stage, the principles that led to successful exploitation of shale plays in the first two phases (horizontal drilling and hydraulic fracturing) will be applied to a wide variety of formations in mature basins. I think that this is what we are now seeing in the Permian Basin of West Texas.
To date, the results of Phases I and II outside the U. S. have not been promising. However, Wood Mackenzie does not feel that Europeans have to follow our sequence of development steps. Rather they believe that by learning from our experience here in the U. S., European projects can go straight to Phase III.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=134623&utm .
