Is America’s Oil and Gas Industry Overdoing it?
Matthias Bichsel — projects and technology director at Royal Dutch Shell Plc (NYSE:RDSA)(NYSE:RDSB) — told The Financial Post that America’s oil and gas business has been over-fracking and over-drilling. “The reservoirs don’t need that many wells. The reservoirs don’t need that many stages of fracks, because not all the pieces of the rocks are as good” said Bichsel.
“U.S. total liquids supply for 2013 is expected to average 12.1 million barrels a day,” reported PIRA, a Market Energy Analysis Group, claiming that the U.S. is presently holding the top position in oil supplies. “The U.S. shale liquids growth of 3.2 million barrels per day over the last four years has been nearly unparalleled in the history of world oil; only Saudi Arabia in 1970 to 1974 raised its production faster,” said PIRA.
PIRA theorizes that though U.S. shale liquid growth rates are not expected to maintain such a high level of growth, they see the U.S. as reasonably secure in its position. “PIRA’s forecast sees the U.S. increasing the lead over the next two largest countries until after 2020 and retaining the lead to at least through 2030,” reported the energy group.