Oil on the (downward slide) upward climb...

[orange]

My dad learned to drive our Rambler Classic 660 frugally because you could not fill the tank more than 2/3rds full or it would overflow.

 

[laatsch55]

That makes no sense, could you explain why? Seems it would be smarter to move the platform 8000ft closer and go straight down. I am sure geology comes into play a bit but your in a basin right? Or is the surface above the reserve on protected lands and you can't put a drilling plateform there?

Because that way you expose 8,000 feet of formation instead of 40 or 50 feet. Better drainage and the only way to deplete a shale formation efficiently...

 

[Northwinds]

So your fracking then?

 

[laatsch55]

Yes. Wells have been fracked for over 100 years and hydraulically for at least 60 now. Hundreds of thousands of wells. But it's a concept the treehuggers can distort and scare up more money for their cause...

 

[Northwinds]

LOL I am no tree hugger. When I think oil drilling, images come up of the Oklahoma and Texas wells. Recovering from shale deposits is a totally different deal since the oil or natural gas has to be busted out. You ever get seismic events from activity?

 

[laatsch55]

Not that you can feel on surface, but that's how you monitor a frac job as it proceeds. Sensitive geophones are placed downhole in adjacent wells or on surface to detect "micro-seismic" events, which can tell the folks running the frac how far and what directions the fractures are going and compare them to the pre-frac resevoir modeling.

 

[laatsch55]

Shale formations differ from sandstone in that porosity exists as natural fractures that could run any number of directions. In sandstone it's more homogenous over the entire formation. Permeability is the measurement of the connectivity of the porosity. If you have porosity and those pores are filled with oil, but no connectivity between those pores you have no oil movement in the formation. Oil can not move to the well bore. Shales have less permeability than sandstone in general, where porosity is present. So, vertical penetration of shales is not conducive to commercial producton because the natural fractures occuring in shales are not consistent. And a vertical entry does not intersect the fractures at right angles, or much at all. However, when you turn and go sideways numerous fractures can be drilled through and fracing extends these natural fractures and creates new ones for the oil to migrate to the wellbore.

Before horizontal drilling, even the most prolific shale formations were teasers. During vertical drilling youd go through a good shale formation and you would show a good drilling break, there would be oil shows on the mudtanks, and the gas sniffers would go nuts, then the water would swell the naturally occuring clays in the shale and pretty soon the formation face would be sealed tight and during drill stem flowtests would give up nothing.

 

[BlazeES]

One of the better coverage stories I've read this afternoon on oil pricing dynamics.

http://www.cnbc.com/id/102152020?trknav=homestack:topnews:10

And wow, regular unleaded dropped from $2.99 early this morning to $2.93 at beer thirty, at my go-to filling station.

 

[BlazeES]

$2.89/gallon this morning at my usual filling station and it looks like many of the BP/Arco's in the area are falling in line too.

WTI seems to be bouncing around $78 a barrel.

I'm willing to bet that parts of Texas & Oklahoma see gas below $2.00/gallon in the coming weeks...

 

[BlazeES]

OK, so maybe $75 isn't the resistance level ...

$75.20

Change
-1.98 -2.57%
Volume
218,845
Nov 13, 2014 11:29 a.m.
Quotes are delayed by 10 min

Previous close
$ 77.18

Day low
Day high
$75.10
$77.16

Open: 76.95


52 week low
52 week high
$75.10
$103.66

 

[BlazeES]

$2.79/gallon this morning at my usual filling station

 

[laatsch55]

HAPPY HAPPY JOY JOY!!!!!

 

[BlazeES]

HAPPY HAPPY JOY JOY!!!!!

Ren and Stimpy?

 

[Northwinds]

$3.05 here

 

[laatsch55]

Ren and Stimpy?

Yep....

 

[laatsch55]

$3.05 here

And that aint right when Cali has cheaper gas that Conn does...

 

[Web Police]

Filled up yesterday for $2.59.

 

[Northwinds]

And that aint right when Cali has cheaper gas that Conn does...

Everything is cheaper anywhere but Connecticut

 

[BlazeES]

http://finance.yahoo.com/news/sub-50-oil-surfaces-north-191354472.html

Interesting article that puts pricing into better perspective.

I'm certain Sensei Lee will add some much need value to this information.

 

[Northwinds]

$2.99 today in town, getting there slowly