![]() ![]() Alta Mesa, a bankrupt shale oil company that is the target of one of those lawsuits, attempted to have it thrown out only to have the judge deny the request, noting that there was evidence of “requisite severe recklessness.” This deception by shale executives led shareholders of bankrupt oil and gas companies to sue the companies for fraud. Screenshot from the USEIA’s November 2022 Bakken Region Drilling Productivity Report. These faulty models inflated the amount of oil production promised to investors by up to 30 percent. There’s a saying in the oil industry: “The rocks don’t lie.” It means that regardless of what is predicted, geology calls the shots on how much oil can be extracted.Īlthough rocks don’t lie, it is becoming increasingly evident that the shale oil industry greatly over-promised how much oil it could produce and knowingly relied on flawed models. shale oil production could reach new highs, but that would require oil prices around $60 a barrel.īut those new highs have not materialized, despite oil being well above $60 a barrel for all of 20. S&P Global reported that conference panelists agreed that U.S. “We believe shale needs to deliver 6 million -11 million b/d from wells not yet drilled.” “If supply is to keep up with demand, we need a lot of shale volumes going forward,” Leslie Wei, Rystad’s vice president of E&P research, said according to reporting from S&P Global. shale oil at its Energy 2020 Americas Virtual Annual Summit. Similarly, a 2019 article in industry publication noted that “there is a consensus in the market that the Permian Basin will be the dominant part of 2040 US oil supply.” In that article, industry analysts Rystad predicted the Permian could be producing 7.5 million barrels per day in 2040.Īnd in 2020, Rystad made optimistic predictions for the future of U.S. ![]() The Bakken peaked at 1.5 million barrels per day in 2019 but has yet to return to that level. In that same article an analyst for S&P Global Platts predicted that even in 2027 the Bakken would be producing 1.5 million barrels per day. In 2017, Inside Energy reported that the governor of North Dakota was aiming to have the Bakken shale play produce 2 million barrels per day. ![]() shale industry was likely to hit peak production much sooner than most experts expected.Īt the time and since, the oil industry has continually promised big things for the future of U.S. In late 2018, DeSmog first raised the alarm about the reality that the U.S. After an understandable dip in 2020 due to the pandemic, oil production still has not regained the record levels achieved in 2019, and predictions that the industry would set new records this year have not materialized, despite 2022’s high oil prices. fracking boom is ending far earlier than many industry experts and CEOs predicted. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |