Big Oil Doubles Down On Shale Despite Price Drop | OilPrice.com
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According to Bloomberg, shale has become “a safe haven” for Big Oil amid the recent increased volatility in prices. The argument is that shale production costs are much lower than a few years ago and combine with the opportunity for a steady production increase and quicker returns than conventional projects.
The recent assessment of the U.S. Geological Survey of the recoverable reserves in the Wolfcamp basin must have added fuel to Big Oil’s shale enthusiasm. The authority estimated that the Wolfcamp basin, together with the Bone Spring formation, also in the Permian, hold the largest reserves of oil and gas ever uncovered, at 46.3 billion barrels of crude and 281 trillion cu ft of natural gas. Great news for those who have the cash to expand in the area. Not all are so enthusiastic, however.