Shale And The Shale Formation - 1609 Words

Introduction Over the past few years, new technology has led us to the discovery and development of large supplies of natural gas within shale plays across the United States. A shale play is a defined geographic area containing an organic-rich fine-grained sedimentary rock. Shale gas in the United States is rapidly increasing as an available source of natural gas. The purpose of this report is to discuss estimated ultimate reserves of gas, oil, and NGL. Also, to discuss the drilling and development costs per well for the Eagle Ford shale, the Bakken shale, the Marcellus shale, and the Tuscaloosa Marine shale. Next, I will comment on the first exploratory well and the company responsible for the discovery well. I will then discuss the†¦show more content†¦The shale play had a $60 billion impact on the local South Texas economy in 2012 and supported 116,000 jobs. Record drilling levels were reported, as well as some wells producing over 4,000 barrels a day. The Eagle Ford shale is the most active shale play in the world with over 200 rigs running and is best known for producing dry gas, wet gas, NGLs, and oil. According to the US Energy Information Administration, the average estimated ultimate recovery (EUR) of wells during 2008-2013 was 168,000 bbl / well. According to the U.S. Department of Energy, the estimated amount of technically recoverable oil is 3.35 billion barrels. Petrohawk Energy received credit for drilling the first modern-day EFS well in 2008. Petrohawk also completed the discovery of the horizontal well with 10 frac stages along 3,200 ft lateral. Lewis Energy claims to have drilled the first EFS targeted well in 2002. Wells cost $6.5 to $7.0 million to fully develop. Bakken Shale The Bakken shale ranks as one of the largest oil developments in the U.S. in the past 40 years. The shale play has driven North Dakota’s oil production to levels four times higher than previous peaks in the 1980s. The Bakken shale play is located in Eastern Montana and Western North Dakota. Oil was initially discovered in the Bakken play in 1951, but wasn’t commercial on a large scale until 10 years ago. The Bakken oil production is economic due to modern horizontal drilling and hydraulic fracturing. The U.S.